CRAINSNEW YORK BUSINESS
Health care ‘Genius Bar’ P. 6 | Halal Guys’ secret sauce P. 8 | Bronx factory’s broken promise P. 9
NEW YORK BUSINESS®®®® DECEMBER 12 - 18, 2016 | PRICE $3.00 THE TRUMP ECONOMY For some New York industries 2017 will be huge. For others, a total disaster Page 13
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Untitled-11 1 8/30/2016 12:13:11 PM DECEMBER 12 - 18, 2016 CRAINSNEW YORK BUSINESS
FROM THE NEWSROOM | ERIK ENGQUIST | ASSISTANT MANAGING EDITOR IN THIS ISSUE
4 AGENDA Uber could Bag it, Chuck take business 5 IN CASE YOU MISSED IT from contrac- THERE’S AN OLD SAYING in political circles that the most dan- tors serving 6 REAL ESTATE disabled gerous place to be is between Sen. Charles Schumer and a New Yorkers camera. The truth is, most elected officials would like to be 7 SMALL BUSINESS the butt of that joke—they’re just not as good at getting air- 8 RESTAURANTS time. Chuck has a knack for finding topics that, even if they 9 MANUFACTURING are not exactly weighty, strike a chord with folks who still FEATURES watch the local news. The subjects of Schumer’s famous Sunday morning press 13 ECONOMIC OUTLOOK conferences are typically consumer-oriented and nonparti- san, to resonate with the maximum number of voters. His weekly outrage might be shady telemarketers calling your Airline fees are a mobile phone even though your number is on the Do Schumer target Not Call list (which Chuck championed, of course). Or “ thieves in Eastern Europe stealing your personal infor- because no one likes mation because some agency or business fails to secure it. fees—or airlines, for Recent targets of the senator have included Lyme disease P. 21 AUDRA FORDIN and ticket scalpers who use bots. that matter. But this Usually, the senator is right. But not always. Some- time, he’s wrong 21 GOTHAM GIGS times his captivation by cameras gets in the way of com- 22 SNAPS mon sense. To wit: airline fees. Airline fees are a Schumer special because no one likes fees—or airlines, for that 23 PHOTO FINISH
matter. Any time a new charge is introduced, the senator cranks up his publicity CORRECTIONS machine to take advantage of that Sunday-morning void in TV reporters’ weekend Nikeia Marks’ employer is Big Brothers Big Sisters shifts. He objected to fees for checked luggage, although they offset the cost imposed of New York City. The organization was incorrectly on carriers and have helped end the rash of airline bankruptcies. Schumer’s latest named in “Giving Back,” published Dec. 5. gripe: higher ticket prices for passengers who put carry-ons in the overhead bins. This time, Chuck is wrong—for the same reason people are wrong to reject tolls on the East River bridges. Pricing is the best way to allocate a finite resource. It’s why flights during Christmas week are expensive but available if you want one. Since airlines began charging for checked luggage, passengers have been stuffing the overhead bins to capacity. Boarding planes has become a competitive sport, with the losers left literally holding the bag and feeling like the kid without a chair when the music stops. Discounting tickets for passengers without carry-ons will inspire a few custom- ers to travel light or pay a bit more to check their bags. It will make boarding faster and more civil. Then we can all sit back, relax and have a nice flight. As for Schumer, my longtime Brooklyn neighbor, I’ll forgive him for decrying ON THE COVER the carry-on fees if he’ll expose one airline trick that I increasingly suspect is no CRAIN’S COMPOSITE: myth: The price of a ticket rises when you search repeatedly for it from the same SUZIN KOEHLER computer. That’s not behavioral economics. That’s just cruel. DIGITAL DISPATCHES CONFERENCE CALLOUT JANUARY 24 Go to CrainsNewYork.com CRAIN’S READ The Sutton Place BREAKFAST FORUM developer who turned Join Crain’s and New York City’s down $45 million in > FIVE BOROUGH PRESIDENTS, profits now stands to including the Bronx’s Ruben Diaz Jr., lose $4.3 million in bankruptcy auction. for a moderated discussion on each leader’s n The acting head of the priorities and the challenges Centers for Medicare and facing the city’s neighborhoods Medicaid Services criticized the idea of in the year ahead. administering Medicaid through block NEW YORK grants to states, one of Donald Trump’s ATHLETIC CLUB health care proposals.
8 a.m. to 9:30 a.m. n Nine years after its launch, the city is over- [email protected] hauling its Taxi TV program by greenlighting three tablet-based entertainment systems. Vol. XXXII, No. 50, December 12, 2016—Crain’s New York Business (ISSN 8756-789X) is published weekly, except for n NBC News is shutting down the digital double issues the weeks of June 27, July 11, July 25, Aug. 8, Aug. 22 and Dec. 19, by Crain Communications Inc., 685 Third Ave., New York, NY 10017. Periodicals postage paid at New York, NY, and additional mailing offices. Postmaster: Send news service it launched in 2009. address changes to: Crain’s New York Business, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. For subscriber service: Call (877) 824-9379. Fax (313) 446-6777. $3.00 a copy, $99.95 one year, $179.95 two years. (GST No. 13676-0444-RT) ©Entire contents copyright 2016 by Crain Communications Inc. All rights reserved. BUCK ENNIS
December 12, 2016 | CRAIN’S NEW YORK BUSINESS | 3
P003_CN_20161212.indd 3 12/9/16 9:15 PM WHAT’S NEW DECEMBER 12, 2016
AGENDAA welcome effort to end the plague of scaffolding
ne of the most maddening inconsistencies of city gov- ernment is that if one window jamb on your building is a quarter-inch out of place, the Landmarks Preservation Com- mission comes down on you like a ton of bricks for wrecking Othe aesthetics of the neighborhood. But if an actual ton of bricks is about to fall, you need not repair it. Instead, you can erect a sidewalk shed to protect FINE IDEA: A City Council passersby, and keep it there for months, years, or even decades. bill would impose We’re exaggerating, slightly, about Landmarks, but not about sidewalk penalties if sheds lingering for ages. is really happens, and—as New Yorkers know work above sidewalk all too well—not infrequently. A plague of these hideous structures has sheds stalls. a icted the city, squeezing sidewalks and dooming businesses to darkness. e sheds are more than just an inconvenience and an assault on our eyes; they drive away customers from restaurants, retailers and other com- the answer, but at least Kallos is asking the right question: How can the mercial establishments, as reporter Aaron Elstein documented in a Crain’s city ensure that sheds are not in place any longer than necessary? His leg- cover story earlier this year. e loss of revenue costs employees their jobs islation would impose nes if seven days go by without work being done, and sometimes entrepreneurs their dreams. with exceptions for extreme weather, delays in city permitting, emergen- Elected o cials have elded countless complaints from constit- cies and other factors. A week is absurdly short for a problem measured in uents about sheds and sca olding but years, and enforcement would be challeng- have made virtually no progress toward Hideous structures linger for years, ing. e bill relies on the notoriously ine - solving the problem. In their defense, cient Department of Buildings, whose own it’s complicated. No one dares say that plunging sidewalks and storefronts headquarters has been clad in sca olding some sheds are not needed. e law re- into darkness for a good while. Kallos envisions the city quiring them arose from a tragedy that repairing buildings itself and billing their le a woman dead from a fallen piece of recalcitrant owners, which may be wishful terra-cotta. But compelling building owners to x their faades when they thinking. A legislative x would catch bad actors trying to game the sys- don’t have the money to do so is not easy. And if it is far cheaper to erect tem while giving property owners intent on rehabbing their faades a rea- shedding and leave it, some will do that. sonable amount of time to do so. We give Kallos credit for starting a con- is month, City Councilman Ben Kallos, D-Manhattan, introduced a versation—one that city government and the real estate industry should bill to end this insanity. It needs a thorough vetting before it can be deemed have had long ago. — THE EDITORS
FINE PRINT Former Goldman Sachs President Gary Cohn emerged as Donald Trump’s leading pick to head the National Economic Council, making him the third Goldman Sachs alum to be considered for a top post. Despite Trump’s criticism of Wall Street, his prospective cabinet has an estimated combined wealth of $14.5 billion. “I want people that made a fortune,” Trump said, “because now they are negotiating [for] you, OK?”
BY GERALD SCHIFMAN STATS
CHAIN STORES added more locations in the city 25 WORDS OR LESS this year than last, with discount variety outlets CHAIN REACTION leading the way.
AND THE CITY No wipe product that “exists today meets the Overall growth in MOST LOCATIONS ADDED IN NEW YORK CITY IN 2016 BY RETAIL CHAINS % chains’ locations toilet-paper standard, Dollar Tree 63 1.2 in New York City, meaning no wipe is up from 1% the year before Dunkin’ Donuts 24 safely ushable into Growth in chain Sprint 19 locations in the % CVS 16 NYC’s sewer system 4.2 Bronx, the highest rate of any borough Family Dollar 12 —Councilman Antonio Reynoso, who wants to ban the label “ ushable” for Number of Dollar Tree Starbucks 12 locations in the city, wipes not approved by city regulators, 0 10 20 30 40 50 60 70 63 more than in 2015 in a statement to Politico New York 73 Increase in locations
BUCK ENNIS ADDICTED TO NUMBERS? GET A DAILY DOSE AT @STATSANDTHECITY SOURCE: Center for an Urban Future
4 | CRAIN’S NEW YORK BUSINESS | DECEMBER 12, 2016
P004_CN_20161212.indd 4 12/9/16 9:15 PM AGENDA ICYMI CRAINSNEW YORK BUSINESS EDITOR IN CHIEF Rance Crain publisher, vp Jill R. Kaplan executive assistant Devin Arroyo, 212.210.0701 EDITORIAL editor Jeremy Smerd No big tent for Senate Dems, managing editor Brendan O’Connor assistant managing editors Erik Engquist, Jeanhee Kim, Robin D. Schatz but they do make a ‘circus’ web editor Amanda Fung art director Carolyn McClain ITH DEMOCRATS photographer Buck Ennis poised to occupy 32 of the senior reporters Joe Anuta, Aaron Elstein, state Senate’s 63 seats, and dispirited by the Matthew Flamm, Daniel Geiger reporters Rosa Goldensohn, pending GOP monopoly in Washington, the Jonathan LaMantia, Caroline Lewis, W Addie Morfoot prospect of controlling Albany’s upper chamber has tan- data reporter Gerald Schifman talized them. But Minority Leader Andrea Stewart-Cousins web producer Peter D’Amato, columnist Greg David (right) and Sen. Jeff Klein, who leads a group of breakaway contributing editors Tom Acitelli, Theresa Agovino, Erik Ipsen, Cara S. Trager Democrats, have been unable to come to terms. In fact, they’ve ADVERTISING been repelling each other with indignant and at times ridic- www.crainsnewyork.com/advertise advertising director Irene Bar-Am ulous press releases. “The debate over who controls the New [email protected] or York state Senate has become a circus,” Klein said in one. That 212.210.0133 senior account managers quote was accurate—but this one, from Stewart-Cousins, not Zita Doktor, Rob Pierce, Stuart Smilowitz, Debora Stein so much: “Let’s be clear: This is not about picking leaders but sales coordinator Devin Arroyo 212-210-0701, [email protected] about uniting the party and serving all New Yorkers.” Picking ONLINE leaders is exactly what this has been about for years. If Klein general manager Rosemary Maggiore 212.210.0237 were made leader of their combined forces, the schism would close in a minute. [email protected] Don’t count on it. Klein was once the No. 2 Democrat in the Senate, but was denied the top spot, and infuriated CUSTOM CONTENT director of custom content the caucus by forming an Independent Democratic Conference and aligning it with the Republicans. His former Patty Oppenheimer 212.210.0711 [email protected] allies saw it as a crude power play, and some vowed never to reward Klein for what they considered selfish treach- multicultural sales manager Giovanni Perla ery. But the mainline Democrats’ leverage has eroded over the years by the convictions of several of their leaders [email protected] senior custom marketing manager and by Klein’s growing his clan to seven members from its original four. Sonia David, [email protected] John Flanagan Simcha Felder EVENTS To keep Klein from re-upping with Senate Republican leader (and free-agent Sen. , www.crainsnewyork.com/events D-Brooklyn), Stewart-Cousins has been calling on Gov. Andrew Cuomo to forge a deal among Democrats, presum- director of conferences & events Courtney Williams, 212.210.0257 ably giving Klein less power than he would accept from her. The demand earned her a stinging rebuke from Cuomo [email protected] Charlie King manager of conferences & events ally at an impromptu press conference last week—a sign that the governor would be just fine with two Adrienne Yee, [email protected] more years of a divided legislature that cannot do much of anything without him. — ROSA GOLDENSOHN AND ERIK ENGQUIST events coordinator Ashlee Schuppius, [email protected] AUDIENCE DEVELOPMENT director of audience & content partnership development Michael O’Connor, Commuter groups push for ‘freedom’ DATA POINT Ackman entices staff to stick around 212.210.0738 As an MTA fare hike looms, commuter Pershing Square CEO Bill Ackman is [email protected] THE CITY’S HOMELESS-SHELTER CRAIN’S 5BOROS advocates have renewed efforts for a offering pension-like benefits to -en www.5boros.com one-fare-payment option that would POPULATION HIT A RECORD HIGH courage high-ranking employees to stay Irene Bar-Am, 212.210.0133 allow riders to transfer seamlessly be- with the hedge fund for at least 10 years. [email protected] OF 60,686 ON DEC. 5. THE tween Metro-North or the Long Island Employees who meet that threshold be- REPRINTS NUMBER OF FAMILIES WITH reprint account executive Krista Bora Rail Road and the city’s bus and sub- fore leaving will receive a share of per- 212.210.0750 way system. The New York City Transit CHILDREN IN SHELTERS HAS formance fees for three years, provided PRODUCTION Riders Council estimates the “Freedom their next employer is not a competitor. production and pre-press director RISEN 25%, TO 13,164, Simone Pryce Ticket” could shorten commutes by as media services manager Nicole Spell much as 40 hours a month. SINCE 2013 Port Authority capital plan stalls SUBSCRIPTION CUSTOMER SERVICE Board members of the Port Authority www.crainsnewyork.com/subscribe City gets $7M for Trump security of New York and New Jersey did not [email protected] 877-824-9379 (in the U.S. and Canada). House Republicans allocated just $7 at seven buildings. He claims the report approve its $30 billion capital plan, $3.00 a copy for the print edition; or $99.95 million of the $35 million New York contained multiple errors including vi- with one member calling the proposal one year, $179.95 two years, for print City requested to cover Donald Trump’s olations that had been cleared. an “absolute waste of public funds.” subscriptions with digital access. to contact the newsroom: security bill for the 75 days between the www.crainsnewyork.com/staff election and the inauguration Jan. 20. Union win at Guitar Center 685 Third Ave., New York, NY 10017-4024 Mayor Bill de Blasio remained hope- After a three-year struggle, the city’s phone: 212-210-0100 fax: 212-210-0799 ful of getting the full tab reimbursed. Retail, Wholesale and Department Entire contents ©copyright 2016 Crain Communications Inc. All rights “There will be another bite at the apple Union won recognition by the Guitar reserved. ©CityBusiness is a registered a few months down the line,” he said. Center in Union Square. The National trademark of MCP Inc., used under license agreement. Labor Relations Board ruled that the CRAIN COMMUNICATIONS INC. Time Warner CEO grilled by Congress company had not bargained in good BOARD OF DIRECTORS A Senate subcommittee gave a mixed faith. The store will have 55 union chairman Keith E. Crain reception to the proposed $85 billion members; the city’s three other Guitar president Rance Crain treasurer Mary Kay Crain, Cindi Crain merger of Time Warner and AT&T. Center locations remain nonunion. senior executive vp, William Morrow Time Warner CEO Jeff Bewkes rejected executive vp, director of strategic suggestions that the deal would make State gives city $80M for development operations Chris Crain Sweet relief executive vp, director of corporate Time Warner’s premium programming Gov. Andrew Cuomo awarded New operations K.C. Crain more expensive to consumers. York City $80.2 million to support The Yankees signed free agent senior vp, group publisher David Klein 121 economic development projects. relief pitcher Aroldis Chapman vp/production, manufacturing David Kamis to a five-year contract worth $86 chief financial officer Bob Recchia ‘Worst’ landlord to sue public advocate Cuomo’s Regional Economic Develop- chief information officer Anthony DiPonio Manhattan landlord Kamran Hakim ment Council put $700 million in play million. The hard-throwing closer, founder G.D. Crain Jr. [1885-1973] filed a notice to sue Public Advocate among 10 state regions. The city re- who won the World Series with the chairman Mrs. G.D. Crain Jr. [1911-1996] Cubs after being traded by the secretary Merrilee Crain [1942-2012] Letitia James for $15 million after be- ceived the fourth-highest amount, in- ing included on her 2015 Worst Land- cluding $2.1 million for the Greenpoint Yankees in July, stands to earn lord list. Hakim was ranked as the 34th Manufacturing and Design Center in some $86,000 per out.
worst landlord because of 565 violations Brooklyn. GETTY IKMAGES
December 12, 2016 | CRAIN’S NEW YORK BUSINESS | 5
P005_CN_20161212.indd 5 12/9/16 9:17 PM AGENDA REAL ESTATE
World’s largest money manager catches a break
BlackRock gets $25 million credit and Hudson Yards home BY AARON ELSTEIN
lackRock is the world’s largest Yards and reportedly sought $1 billion money manager, with more in tax relief from the city as part of the than $5 trillion in client as- deal. Mayor Bill de Blasio rejected the sets. Now it has a $25 million request and appeared to be vindicated Btax credit from the state to help defray as the bank elected to stay in the city the cost of moving its headquarters to anyway. The mayor has railed against Hudson Yards from Park Avenue. subsidies for the Wall Street crowd, The subsidy, announced last week, even though the big banks account for was granted by the Cuomo administra- better than a fifth of all private-sector tion because BlackRock was looking wages paid in the city and a sizable to move about 400 employees—15% chunk of city tax revenue. (See page of its New York workforce—to New 16 for more.) Jersey, according to people familiar In recent years, New Jersey has with the matter. Not only will those made a renewed push for Wall Street jobs stay in the city, but BlackRock has jobs, offering generous incentives to GOING YARD: The financial firm will not relocate 400 employees to New Jersey. pledged to add 700 here as part of its JPMorgan Chase and other firms to deal with the governor. send back-office employees across the Howard Zemsky, CEO of Empire Hudson. Goldman Sachs’ Salt Lake Andrew Cuomo to offer more tax OnDeck Capital snared $5.5 million. State Development, called the deal a City office, which opened in 2000, now breaks to Wall Street firms through In exchange for the tax breaks, “win-win for New Yorkers.” BlackRock has about 2,000 employees, and during what’s known as the Excelsior Jobs Pro- firms are supposed to commit to cre- declined to comment beyond a pre- the summer, Citigroup and Deutsche gram. Last year, Morgan Stanley was ating or keeping a certain number of pared statement saying it is “thrilled” to Bank said they would hire more people awarded up to $52 million in tax cred- jobs in the state. But in July, the New move to Hudson Yards. in Florida, where labor and rent cost its, and the trading firm KCG Holdings York state comptroller’s office issued a The subsidy award comes two years considerably less. got $15 million. Bank of New York report saying it couldn’t confirm wheth- after JPMorgan Chase considered The prospect of losing well-pay- Mellon was given $3 million worth of er recipients had actually met their job moving its headquarters to Hudson ing jobs seems to have spurred Gov. breaks earlier this year, while lender commitments. n
Boston Properties gives Oscar opens a ‘Genius Bar’ office tower a face-lift for insurer’s members
Renovation intended to provide new amenities BY DANIEL GEIGER Startup hopes Brooklyn outpost will boost revenue BY JONATHAN LAMANTIA
oston Properties, one of tartup insurer Oscar has ring to the customer-service station in- the city’s largest commer- opened its first members clinic, side Apple stores. cial landlords, is focusing in downtown Brooklyn, in col- The approach could also lower on one of its smallest office laboration with Mount Sinai. medical costs that have contributed Bbuildings to help revive a trio of towers SOscar hopes to improve its members’ to the insurer’s financial losses. Oscar it owns around it. experience and forge tighter relation- has 60,000 members in New York. The In the shadow of the slant-roof spire ships with doctors in its network, said company lost $128 million in New York, at 601 Lexington Ave., the nearly $20 Oscar’s chief executive, Mario Schloss- California and Texas during the first billion public real estate company has er. The clinic will also con- nine months of 2016, fol- begun a $150 million-plus renovation nect Mount Sinai to a new lowing a $105 million loss of 159 E. 53rd St. source of patients, which in 2015, when the insurer The six-story building is easy to could lead to referrals to the also operated in New Jersey. miss. Because the base of 601 Lex- system’s specialists. The company has received ington is on stilts that elevate it more The fourth-floor, 6,000- more than $700 million in than 100 feet above street level, 159 E. square-foot office located venture-capital investment 53rd St. sits partially under the 59-sto- 601 LEXINGTON AVE. at 408 Jay St. includes five to date. Oscar was most ry tower and, clad in the same silver exam rooms, three consul- recently valued at $2.7 panels as the building above, blends tation rooms and a mul- billion, following a $400 in. Now Boston Properties is trying to an executive vice president at Boston tipurpose room, where million investment round make it stand out. Properties, said features like the new Oscar plans to offer classes from Fidelity Investments MARIO SCHLOSSER The company is redoing the facade, outdoor plaza and the food hall at 159 in yoga and nutrition and in February 2016. replacing its 5-foot-9-inch windows E. 53rd St. will also make 601 Lexing- specialized programs for Amid uncertainty over with significantly larger 7-foot-6-inch ton Ave. and 399 Park Ave., along with diabetics and expectant mothers. The the future of the Affordable Care Act panes, installing a new, private lobby, a third tower it owns at 599 Lexington center initially will be staffed by a pri- when President-elect Donald Trump and redoing a sunken public plaza Ave., a bigger draw. mary-care physician, a nurse practi- takes office, Schlosser said Oscar is pre- on the corner of East 53rd Street and “It used to be you could have nice tioner, a behavioral health specialist and paring to sell plans to small businesses Lexington Avenue that connects both office space and that was enough to at- a medical assistant. in New York by February, and hopes to buildings with the 53rd Street sub- tract tenants,” said Powers, who manag- Dr. Harry Ritter, Oscar’s vice presi- sell to larger employers eventually. way station for the E, M and 6 trains. es Boston Properties’ New York office. dent of care delivery, said the practice One of Oscar’s co-founders is Josh It is also gut-renovating the build- “That’s not enough anymore. You need will not feel like a traditional doctors Kushner, whose brother, Jared Kushner, ing’s ground- and lower-level spaces, to create a place where people will en- office. “We want to think of this as a is Trump’s son-in-law. Schlosser said he where it plans to create a food hall joy spending their time around work, a ‘Genius Bar’ experience rather than a doesn’t expect any favors from the new
BUCK ENNIS and fine-dining space. John Powers, place with amenities and energy.” n counter experience,” Ritter said, refer- administration. n
6 | CRAIN’S NEW YORK BUSINESS | December 12, 2016
P006_CN_20161212.indd 6 12/9/16 8:38 PM AGENDA SMALL BUSINESS
HATCH BACK: MTA quietly tests taxis and Uber Owners of wheelchair cabs could to provide car services for disabled get new business. Could mean new competition for contractors BY MATTHEW FLAMM
axi compa- than 40,000 cars in New providing affordable, reli- the two dozen or so ex- ly in the process. “Cus- nies and the York are wheelchair- able transportation to ev- isting paratransit provid- tomer satisfaction and e-hailing gi- accessible, according to eryone, everywhere,” an ers will be affected, since system reliability remain taking customer feed- ant Uber are the Taxi and Limousine Uber spokeswoman said. they’re operating under our top priority for Ac- back into account as we Tvying to convince the Commission. If the project goes long-term contracts. The cess-a-Ride,” a spokes- determine the future of Metropolitan Trans- “We are committed to ahead, it’s not clear how MTA said it is very ear- woman said. “We are this pilot.” n portation Authority they can transport dis- abled, impaired and elderly New Yorkers better and cheaper than the current providers of Access-a-Ride. At stake is a share of the more than $450 million the state pays for the pro- gram serving disabled New Yorkers. Several months ago, the state agency quietly began a “proof of con- cept” study in which Access-a-Ride users request a ride and the MTA dispatches one through an e-hail app such as Uber, Arro or Curb, the latter two used by cabs. Uber, which only recently launched a wheelchair-accessible pilot program, is said RETENT ON to be interested in the 80% of the paratransit business that does not involve wheelchairs. The prospect of Uber claiming any share of those payments has irked taxi owners—who are making half the city’s fleet wheelchair acces- sible—and dismayed disability advocates, who say the company discriminates against wheelchair users. Some of their allies last week peppered the MTA with letters protesting Uber’s involvement. “The MTA has both [a] legal and moral ob- ligation not to contract with a company that Offer the right benefits. Keep employees at their best. blatantly discriminates At Aflac, we know building your business starts with keeping your best employees. against the disability Which is why we help with costs not covered by major medical insurance and pay community to trans- your employees directly. And with One Day Pay,SM we make it a priority to pay claims port members of that as fast as possible — in 2015, Aflac paid 1.2 million One Day PaySM claims. All so your community,” wrote Assembly member Jo employees and business can stay focused on success. See what Aflac can do for Anne Simon. your business at aflac.com/retention Uber noted that some existing providers *Aflac pays policyholders directly, unless otherwise assigned. **One Day PaySM available for most properly documented, individual claims submitted online through Aflac SmartClaim® by 3 p.m. ET. do not offer wheelchair Aflac SmartClaim® not available on the following: Disability, Life, Vision, Dental, Medicare Supplement, Long-Term Care/Home Health Care, Aflac Plus Rider, Specified Disease Rider and Group service either—and policies. Aflac processes most other claims in about four days. Processing time is based on business days after all required documentation needed to render a decision is received and no further validation and/or research is required. Individual Company Statistic, 2015. Individual coverage is underwritten by American Family Life Assurance Company of Columbus. pointed to its pilot pro- In New York, individual coverage is underwritten by American Family Life Assurance Company of New York. Worldwide Headquarters | 1932 Wynnton Road I Columbus, GA 31999. gram as evidence that it Z160117 3/16 does not discriminate.
BUCK ENNIS About 60 of Uber’s more
December 12, 2016 | CRAIN’S NEW YORK BUSINESS | 7
P007_CN_20161212.indd 7 12/9/16 8:38 PM AGENDA SPOTLIGHT RESTAURANTS
A xture of New York street meat goes global
The Halal Guys’ recipe for success BY MATTHEW SEDACCA
he Halal Guys spent 22 years building their business, hawking meat-and-rice platters from steaming food carts, and since 2014, from storefront restaurants. ey also still operate at their rst street-cart location, the corner of West 53rd Street and Sixth Ave- nue. And now, a er expanding to the East Village and the Upper TWest Side, they’re taking their business global. “I had the honor to travel all the way to Manila, Philippines, to attend our rst franchise opening,” said Hesham Hegazy, the director of brand develop- ment who has worked for Halal Guys since 2011 and advised them uno cially since the business started. “I was almost breaking down in tears.” e Halal Guys—Muhammed Abouelenein, Ahmed Elsaka and Abdelbaset Elsayed—opened their rst storefront restaurant in August 2014 at East 14th Street and Second Avenue, near New York University dorms and their poten- tial supply of customers seeking late-night munchies; they opened their second that December on West 95th Street and Amsterdam Avenue, not far from Columbia University. at same year they began franchising the operation, which now has more than 30 restaurants worldwide. ( e company, which declined to share revenue or pro t information, retains the rights to open restaurants in New York City but franchises the operation elsewhere.) e goal is to open one to two restaurants a month, said Dan Rowe, CEO of Fransmart, a franchise consultancy rm that is advising the chain on its expansion. e Halal Guys’ success didn’t come easily. Abouelenein, Elsaka and Elsayed—all Egyptian immigrants—founded the company in 1990 a er Abouelnein, who trained as a veterinarian, realized that he couldn’t practice while studying to get certi cation in the U.S. So he and Elsaka and Elsayed ac- quired a hot-dog cart from a friend, then switched to selling halal platters two years later when they realized there was a market for them among New York cabdrivers, many of whom are Muslim. Word of mouth spread among cabbies, then bloggers, and in 2005, the Halal Guys were nalists for the Vendy Award, OFF STREET: The Halal Guys’ 307 E. 14th St. location opened in June 2014. which honors street vendors nationwide. Today, only about 5% of Halal Guys’ customers adhere to halal dietary re- strictions, Rowe said. Since halal food must be free of what Islamic law considers impurities, such as pork and alcohol, and prepared with animals slaughtered FOCAL POINTS according to religious law, halal food is sometimes perceived to be cleaner and more ethical—which has helped make it more appealing to young, middle-class ORIGINAL LOCATION West 53rd Street and Sixth Avenue consumers of all faiths, according to Susan Labadi of the American Halal Associ- NUMBER OF FRANCHISES SIGNED TO DEVELOP 426 ation. at may explain why listings of halal food on U.S. menus have grown 7% year over year, according to the consultancy Technomic. LEADERSHIP Muhammed Abouelenein, founder and CEO; Abdelbaset “It’s clear that Americans of all di erent backgrounds are willing to try new Elsayed, founder; Ahmed Elsaka, founder; Ahmed Abouelenein, CEO; Mike tastes and diets,” said Jordan Rost, vice president of consumer insight at the Speck, COO; Hesham Hegazy, director of brand development; Dan Rowe, CEO of Fransmart, the restaurant-franchise consulting rm data and measurement company Nielsen. GOALS Expand number of franchises globally and become the dominant Today NYU, tomorrow the world American halal food restaurant in the world To operate a Halal Guys restaurant, potential franchisees must have a mini- MOST EXPENSIVE MENU ITEM The original combo platter, $6.99 mum of $1 million in liquid capital and $2 million in total net worth, plus agree LEAST EXPENSIVE MENU ITEM Extra sauce (white or hot), 50 cents to develop between ve and 10 stores. In exchange for a $40,000 per-restaurant licensing fee, a 6% royalty and a 2% advertising fee, the Halal Guys corporation provides franchisees with ingredients—including their famous white sauce— training in food preparation and national advertising. ese are fairly standard terms, according to Warren Ellish, a professor at Cornell University’s Johnson Graduate School of Management. For years, whenever Paul Tran came to New York from Southern California, the rst place he’d visit was Halal Guys, for avors “you can’t nd anywhere else.” Last year, he and four partners opened SoCal’s rst Halal Guys franchise. Tran, who works with Fransmart and Rowe, said he decided to open the restaurant in part because Halal Guys had such a big following in Manhattan that the brand is already known nationwide. In Costa Mesa, where Tran opened the rst outpost, adventur- ous foodies are always looking for interesting cuisine, he said, and there’s not much competition from other Middle Eastern fast-casual restaurants. Although Tran declined to disclose pro ts or revenue, he said “sales have remained the same” since his Costa Mesa location opened. According to Los Angeles County CW-news a liate KTLA, 400 people waited in line on opening day in October. ON STREET: The Halal e lines are shorter now, Tran said, partly because of e ciency Guys’ street operations started in 1990 from a and the restaurant’s new delivery service—a natural extension hot-dog cart.
BUCK ENNIS considering that the company started with a street cart. I
8 | CRAIN’S NEW YORK BUSINESS | DECEMBER 12, 2016
P008_CN_20161212.indd 8 12/9/16 2:33 PM AGENDA MANUFACTURING
STOOD UP: Allegion will shutter the Bronx factory New owner to shut down Bronx this week. factory, move jobs to Indiana Allegion broke promise to keep warehouse open, says former owner of Zero International, a 92-year-old maker of fireproof doors and hinges BY MATTHEW FLAMM
hrough World War more than $20 million. “The 2015, when he was fired and II and the worst days bottom line is that people who escorted from the building, ac- of the South Bronx, worked for me for 30 years cording to a breach of contract Zero International are out of a job this Christmas suit he filed in New York State an out-of-state company. “For an Allegion spokeswoman said. Tstood its ground on Concord [because of] false promises.” Supreme Court in April 2016. large manufacturing compa- “Our Zero customers will Avenue and East 144th Street, Wexler said he sold Zero, nies that aren’t making their benefit from the business sup- turning out soundproof doors which was founded by Hun- Too late for regrets products for the local market, port functions at [our] India- and fireproof hinges that garian immigrants in 1924, af- “If I would have smelled it’s hard to justify being in such napolis operations, including made their way to the White ter Allegion promised to keep they were lying, I wouldn’t an expensive place,” said Cen- technology, quality and distri- House, the Pentagon and One the company in the Bronx. To have sold it,” Wexler said. At ter for an Urban Future Execu- bution infrastructure,” she said. World Trade Center. This help make that possible, Wex- the time of the sale, Zero was tive Director Jonathan Bowles. Allegion is known for its week that history comes to an ler leased Allegion the Concord profitable, with approximate- The news was hard to take, Schlage Locks brand and has its end. A new owner will shut Avenue buildings, which he ly $20 million in revenue, said several company veterans U.S. operations in Carmel, Ind., the factory’s two buildings, lay owns, for about $5 per square and around 100 employees in who were helping pack up on but its company headquar- off 58 workers and move the foot, or half the market rate. the Bronx, with another 40 a recent afternoon. A forklift ters in Dublin, a setup that led company to Indiana. It wasn’t Wexler, a Romanian immigrant at support factories in Ohio operator who had worked at Fortune to include it on a list supposed to be this way. who started at Zero as an engi- and North Carolina. Workers Zero for almost 30 years said of “Top American Corporate “It hurts,” said Elias Wex- neer in the late 1970s, also said made anywhere from mini- he didn’t know what he would Tax Avoiders” in 2014. Presi- ler, who owned the sealing- Allegion agreed to name him mum wage to $30 an hour. do next. “It’s sad,” he said. dent-elect Donald Trump has systems manufacturer for president emeritus for life and Zero joins other Bronx Business considerations promised to lower corporate three decades before selling it keep him as an adviser. manufacturers, like the Stella spurred the move to the Indi- tax rates to lure such companies to security-solutions provid- Now 66, he held the emer- D’oro bakery, that left the bor- anapolis area, where the com- back to the U.S. Allegion’s 2015 er Allegion in April 2015 for itus position until September ough after being purchased by pany’s other brands are located, revenue topped $2 billion. n
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December 12, 2016 | CRAIN’S NEW YORK BUSINESS | 9
P009_CN_20161212.indd 9 12/9/16 4:07 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS REAL ESTATE: ON THE MARKET 2017 New York City Real Estate Outlook eaction within the New York real estate Paul Travis, president of the real estate advisory “Historically, immigrants take jobs that long-time TWO WORK IN community to Trump’s election victory fi rm Washington Square Partners, notes the jury is Americans are not willing to take—food service, has been positive, despite uncertainties still out on where the Trump administration will go retail, home care, cleaning,” said Schenker. “Being MONTHS Rregarding his position on major issues such as the with fi nancial regulation, but that restrictions go a paid properly for those jobs and paid on the books * repeal of the Dodd-Frank Wall Street Reform and long way in protecting the New York economy as a would be an ideal situation.” FREE BY MENTIONING THIS AD Consumer Protection Act; funding for proposed whole. “New York is so tied to the fi nancial services infrastructure projects; housing; immigration and industry that the city is much more at risk in a One way Trump’s eventual immigration policy might Expires 01/31/17 trade policy, as well as local issues like flood zones banking crisis than most cities,” he said. “Increas- aff ect New York real estate is by changing the EB-5 and the aff ordability of community college. ing risk and ending up in a 2008-type event again Immigrant Investor Program provides green cards could be extremely harmful for the city.” (permanent residence) to foreigners who invest a STYLE Most in the industry view Trump as a successful de- minimum of $500,000 or $1,000,000 in a real estate veloper who is well-versed in the sector’s problems Interest rates could go up under the new administra- project. Enacted in 1990 by the U.S. Citizenship and priorities, and an advocate for cities. “He under- tion, and most industry sources say a slight increase and Immigration Services and renewed regularly stands the dynamics and complications of major cit- is long overdue. An initial increase of 25 basis points ever since, it is slated for renewal again on Dec. 9. ies, how they function and what makes them work,” is feasible, according to Leff el, with an increase of The program is currently under fi re for generating said Gregg Schenker, president, ABS Partners Real another 25 basis points over the next 12-24 months, more funds for lucrative urban construction projects Estate in Manhattan. “He has a lot of good ideas.” to stimulate the economy at the right pace. than the economically distressed rural areas it was created to serve. Some 90% of current applicants FULLY FURNISHED The repeal or reform of Dodd-Frank is foremost in He says the danger comes when there is interest are from China. the minds of industry leaders, most of whom view rate growth without economic growth. “That is the loosening of banking regulations as a positive, stagflation,” said Leff el. “And it’s a hard condition Infrastructure is one campaign issue that has the the logic being that making it easier for banks to for an economy to get out of.” real estate community in agreement. As the resi- lend will boost the number of mortgages available dent population hurtles toward the 9 million mark, and increase construction lending. Many believe this The Trump administration has also proposed the need for new tunnels, roads, public transpor- will help grow the fi nancial services sector overall, lowering corporate taxes, and most agree that will tation, housing and schools is becoming dire. The creating jobs and leading to an increased demand for further boost the New York real estate market. community is eager to see the renewal of the 421-a commercial offi ce space. Others advocate lowering taxes on foreign invest- tax abatement which is meant to guarantee aff ord- ment which they consider to be an impediment able housing, and to secure funding for projects According to Fred Leff el, president of Kaufman to growth or, at the very least, contributing to like the tunnel under the Hudson River linking New New Ventures, specialists in acquisition and the sluggishness of sales of condos priced at $5 York and New Jersey, a revitalized Penn Station repositioning of commercial offi ce properties, less million and up. and the completion of the 2nd Avenue subway. regulation will help businesses all over the U.S., Many feel that New York does not receive its fair enhancing institutional demand in New York and “There is a lot of money that wants to flow this way share of federal subsidies for such projects, but other major gateway cities. He believes that bene- but can’t,” Andrew Barrocas of MNS said. “There hope that will come under review with the new fi ts to the real estate market will not be limited to is defi nitely some softness at the high end of the administration. Manhattan. market, and that would help.” “He will identify sensible ways to spur infrastruc- “Demand will push out into other areas,” said Lef- It remains to be seen what bearing any changes ture spending, whether it’s through tax credits on fel. “Tenants currently in spaces getting taken over to immigration policy may or may not have on the individual spending, or increasing the debt,” said by banks will push out into places like Bushwick or real estate industry in New York City. According to ABS Partners’ Schenker. “It makes far more sense Long Island City.” Eric Benaim, founder of Modern Spaces brokerage to increase the debt to rebuild infrastructure than fi rm in Long Island City, most workers on large to increase the debt to fi ght a war in Afghanistan FULLY WIRED Still, others in the industry caution against even construction projects in New York have documen- or protect the whole world when we haven’t taken revising the Dodd-Frank law, let alone repealing it, tation of legal status, whether they are union or care of ourselves.” fearing a repeat of the 2008 mortgage debacle. nonunion. Nonunion workers employed by what’s 3 COLUMBUS CIRCLE 125 PARK AVENUE 28 WEST 44TH STREET Andrew Barrocas, CEO of MNS Real Estate, favors known in the construction sector as open shops, more restrictions to keep out unqualifi ed buyers are paid roughly 30% less than union members. and ensure stability in the lending market. No industry sources favor wholesale deportation, and those interviewed noted the positive contribu- “[A] more rigorous approval process means banks tions of immigrants to the city REDEFINING REAL ESTATE are going to weather a potential storm better than in economy as a whole. previous years,” Barrocas said. “If I were the bank I’d At Emerge212, we know that one size or solution does not work for want to take as little risk as possible.” every business, especially a growing one. Count on us to customize our fully furnished office space to your needs, so you pay for the space that fits your business now. CONTACT US TO SCHEDULE A SHOWING FULLY SERVICED 877.741.0705
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Untitled-4 1 12/2/16 2:51 PM ADVERTISING SUPPLEMENT TO CRAIN’S NEW YORK BUSINESS REAL ESTATE: ON THE MARKET Where Developers Will Invest Next in the City
uoyed by the prospect of less-stringent ly have remained low because of the location’s Brooklyn remains the hottest ticket in town banking regulations, the possible reinstate- far distance from the Lexington Avenue line. despite prices that rival Manhattan in many areas. ment of the 421-a tax abatement and prog- Dumbo has become the quintessential 24/7 Bress on several major infrastructure projects with Still, the outer boroughs continue to off er the community, spurred by the creation of Brooklyn talk of many more in the future, there’s no doubt greater price advantage. According to Tan, Man- Bridge Park; the development of luxury offi ce and that New York’s real estate sector will continue to hattan is currently hot but venture to Long Island retail space Empire Stores; and leveraged by its invest, the only question is where it will invest. City “and you get a 50% discount.” A bustling proximity to historic Brooklyn Heights, the Brook- transit hub with increased ferry service expect- lyn Tech Triangle, the rapidly changing Downtown Access to transportation is a key determinant of ed by next summer, the westernmost corner of Brooklyn and the BAM Cultural District. the investment potential of any neighborhood. Queens is seeing high demand for commercial and According to Wei Min Tan, associate broker with residential property further fueled by the creation “In terms of investment, Dumbo is a great place to the Castle Avenue team at Charles Rutenberg, of Cornell Tech on Roosevelt Island. North of the be now and in the future,” said Robin Schneider- the area surrounding the World Trade Center site Ed Koch-Queensboro Bridge, Astoria will get a man, managing director of business development is at the top of developers’ lists. It has countless boost from Hallets Point, the Durst Organization’s for Halstead Property Development Marketing. transportation options, as well as shopping cen- planned $400 million, 2,000-unit rental complex. “Empire Stores brought it the kind of infrastruc- ters like the new Westfi eld World Trade Center Much-needed amenities are bound to follow. ture the neighborhood wanted and needed.” mall under Santiago Calatrava’s Oculus, Brook- fi eld Place, hotels, museums, green space and Apart from Urby Staten Island—Ironstate Devel- And it doesn’t look like the flow of investment the planned Ronald O. Perelman Performing Arts opment Company’s 900-unit mixed use rental dollars into Dumbo will slow down any time soon. Center. “The Financial District remains a value complex—and some smaller residential projects According to Schneiderman, the new luxury con- buy, where prices on residential property are still along the Bay Street corridor, developers have do at 51 Jay St., which includes 2- 3- and 4-bed- good for the quality, especially south of the World been slower to invest in Staten Island despite the room units, is 80% sold. Nearby, the six-building, Trade Center,” said Tan. hoards of people expected to the area because 1.4 million-square-foot Jehovah’s Witnesses of the mega Ferris wheel and the Empire Outlets Watchtower Building is being converted into The 30 million-square-foot Hudson Yards project shopping complex. The South Bronx, meanwhile, offi ce and retail space, a hotel and roof decks. on Manhattan’s West Side is often cited as an ex- was also slow to catch on but is now experiencing ample of the appeal of this long-term investment a surge in large-scale residential and commercial This is the current zeitgeist. To fi nd the next strategy, as is the area east of the new Second development, particularly in Mott Haven and along best neighborhood, investors need only follow Avenue subway where property prices historical- the Harlem River. the train lines.
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Crain's Real Estate Special Section MECH.indd 3 12/8/16 9:56 AM OUTLOOK | NYC 2017
2016 2015 4.33M 2014 4.27M 4.17M 2013 TOTAL JOBS IN NEW YORK CITY 2012 4.03M 2011 3.92M 3.83M
WIN, LOSE OR BRACING FOR A DRAW? How New York’s industries YEAR OF CHANGE will stack up In 2017 Donald Trump and the other forces poised to shape the city’s economy in 2017. Some industries will fare better than others BY GREG DAVID BANKS SHARE PRICES OF MAJOR BANKS have n 2014 and 2015, New York City added a that it will be months before policies that a ect eco- soared by 20% since Election Day, making quarter million jobs, something that had nomic growth will start to take shape. But as 2017 it the hottest sector of the stock market. never been done. e news isn’t as good for progresses, Trump’s priorities will start to matter, es- The rally is fueled by hopes that a Donald this year, and won’t be in 2017, but make no pecially for the securities industry. e recent news Trump administration will deliver lower mistake: e city’s economy continues to on Wall Street has been pretty bad: e sector has taxes and less regulation, while also stim- Iprosper as sectors from tech to tourism to account- not regained the jobs lost in the recession, pro ts ulating the economy. ing to advertising—and especially health, educa- have fallen for two consecutive years and the state tion and the city government—continue to expand. comptroller has predicted bonuses will drop again COMMERCIAL BANKS are poised to thrive e great unknown is what President Donald next year. While it may not be as vital as it was from because the difference between short- and Trump will mean for New York. His plan to cut taxes 1980 to 2008, the nancial market is still the city’s long-term interest rates has widened in recent weeks on expectations that Trump’s economic and add to infrastructure spending could provide a most important sector because of the outsize pay. policies will lead to in ation down the road. scal stimulus. His determination to roll back regu- Less than 5% of city jobs come from Wall Street, Smaller banks make most of their money by lations on Wall Street (see page 16) could help this but the industry accounts for more than 20% of all borrowing cash at a low rate and lending crucial industry that has been, at best, treading wa- income in the city and more than 20% of all state it out at a higher one, so higher rates ter. But he could also slash aid to the city and state tax revenue. With nancial stocks fueling the Trump spell increased pro ts. Rising long-term rally, investors are betting that the next president over immigration reforms or set o a disruptive interest rates are also good news for trade war that would upend all the assumptions. will unshackle the industry from regulation, result- insurers and pension plans, both of which Economists who specialize in the local economy ing in soaring pro ts and a boost in bonuses, further invest heavily in bonds and have struggled lately agree that the city will end 2016 with an increase of accelerating local gains. to generate attractive returns. about 80,000 jobs, a good performance But not all sectors will be winners in by historical, if not recent, standards. 2017. While the city expects to set anoth- eir forecasts for next year suggest a er tourism record of 60 million visitors ENTERTAINMENT similar uptick. this year, the increase is relatively small. FILM AND TV PRODUCTION will continue e metro area’s gross domestic $1.6TNew York metro area’s Without substantially more visitors, to grow in 2017, and insiders are optimistic product has grown 20% since 2013 to gross domestic product room rates will come down because so that the Legislature will renew a key $420 $1.6 trillion, according to the federal many new hotel rooms are coming on million tax credit that is at the heart of Bureau of Economic Analysis. at’s line. International visitors are also shop- the industry’s boom but set to expire nearly twice the size of No. 2 Los Angeles’. e best ping less, and retail employment in Manhattan is in 2019. Renewing the tax break will news is that wages are rising faster here than they are falling as a result. keep the four major studios—Broadway in the rest of the country. Median household income Vacancy rates are increasing for the most expen- Stages, Kaufman Astoria Studios, Silvercup in New York jumped 5.1% to $55,752 in 2015 and is sive apartments as well as for retail and o ce space. Studios and Steiner Studios—occupied for years now back to pre-recession levels. Another jump is ere is clearly a glut of superluxury units, and re- to come. Teamsters Local 817, which represents likely for this year and next, in part because of the tailers, given the erosion of their businesses to on- a swath of lm and TV production crew members, big minimum-wage hike coming at the end of 2016. line shopping, simply can’t pay what landlords are reported the highest employment gures in its (See page 14.) asking. e strength of residential construction may 113-year history. But despite the recent Wall Street rally, a Trump depend on the resolution of the 421-a tax-break con- THE MUSIC INDUSTRY will struggle, presidency may not have much of an impact on the troversy, and o ce rents will remain weak thanks to as recording sessions in the city have city’s fortunes, at least for the rst half of 2017. Mark what looks to be a temporary surfeit of space. Tak- been on the wane for at least 10 years, Zandi, the chief economist of Moody’s Inc.—and a en together, the overall economy is likely to be a big according to industry coalition New York Is solid Democrat—said the national economy is do- plus for Mayor Bill de Blasio as he seeks re-election. CONTINUED ON PAGE 18
BUCK ENNIS, GETTY IMAGES ing so well, and the Trump team is so unprepared, If it falters, he can always blame President Trump. I
DECEMBER 12, 2016 | CRAIN’S NEW YORK BUSINESS | 13
P013_P18_CN_20161212.indd 13 12/9/16 5:46 PM OUTLOOK| WAGES
DAVID BOLOTSKY already pays workers above mini- mum wage, but worries the coming hikes will make it LABOR PAINS harder to fill entry-level jobs. Trump administration will give employers edge in battles with unions BY ROSA GOLDENSOHN
nions are stronger in New York than anywhere else in the U.S. But after eight years of a pro-labor climate in Washington, D.C., the scales are set to tip back in the employers’ favor under the Trump administration, experts and union leaders say. With Donald Trump in the White House, the National Labor Relations Board (NLRB) and the executive branch will likely empower business owners who don’t want employees to Uunionize by increasing the size requirement for bargaining units and making sure corporate owners are not classified as the employers of workers at individual franchises. “[Unions] are in for a difficult time,” said Joseph Baumgarten, who co-chairs the labor and employment department at law firm Proskauer Rose in Manhattan. “But that’s not unprecedented. I don’t know that you could expect the pendulum to swing any more in the other direction than it did under Reagan.”
Of the fewer than 15 million unionized workers Union members voted for the Democratic presi- nationwide, 2 million live in New York, which has dential candidate in greater numbers than the gen- the highest unionization rate of any state. Nearly eral populace, according to exit polls, but by the 18% of New York’s private-sector workers and 70% smallest margin since 1984, according to Politico. of its public-sector workers belong to unions. Na- In response, union leaders should focus on their tionwide, just 11% of workers are in unions, com- members’ needs, “striking, rallying, pushing for RAISING THE MINIMUM pared with 24% in New York. good contracts” to develop a layer of union activ- New York business owners prep for the coming wage hikes The five-member NLRB, appointed by the pres- ists who can motivate their co-workers, said Jason ident and confirmed by the Senate, already has one Ide, the president of Teamsters Local 814, which Republican and two vacancies. Trump will also represents commercial movers in the city. Without ext year at Li-Lac Chocolate, Pres- choose the board’s next general counsel. In addi- that, “people get apathetic and drift in unpredictable ident Anthony Cirone will look to tion to decisions about specific employment dis- ways—even toward someone like Trump.” invest in automation, reduce em- putes and duties overseeing union elections, the Union leaders who backed Hillary Clinton say ployees through attrition and con- board has expansive powers to set the climate for the party would have done well to embrace the eco- template whether he should move union organizing. nomic rallying cry of Sen. Bernie Sanders. Nout of New York City when his lease expires. Under Barack Obama, the NLRB enacted rules “If we had Sanders’ messaging, more working Cirone is adjusting the 93-year-old chocolate and took positions to make it easier for unions to people would have supported the party,” said Stuart maker’s business strategy in order to afford to in- organize workplaces, including dictating that an Appelbaum, president of the Retail, Wholesale and crease the pay for 40 full-time employees at his four election had to be held within 21 days of a petition’s Department Store Union and a Clinton delegate at Manhattan retail shops and one Brooklyn factory signing. Unions could also form smaller bargain- the Democratic National Convention. when New York City’s minimum wage rises to $11 ing units within departments and subsets Union workers are focusing on joining on Dec. 31, the first step on the way to the state- of workers instead of having to organize a forces with other movements to broaden mandated $15-per-hour wage by the end of 2018. shop all at once. The board also sided with % their support. Figueroa’s building-services While supporters say the economic impact will labor on the question of joint employers, workers’ union, for example, demonstrated boost household spending and increase demand in allowing megachains like McDonald’s to be that approach shortly after the presidential the local economy, most employers are looking to cut 24OF NEW YORK considered employers of workers at fran- election with a “Fight for $15”-themed ral- costs rather than raise prices to deal with the pres- chises, for example. Those changes can all workers are ly in Zuccotti Park, the site of the Occupy sure the higher wages will put on their budgets. be reversed. union members Wall Street protests. An ensuing march in- “Even though we’re in New York City and it’s a Fast-food workers have launched union cluded members of 32BJ and other unions, luxury market, people are conscious of the money campaigns at local McDonald’s locations, among as well as nonunion airport and fast-food workers, they’re spending,” said Cirone, adding that custom- other fast-food franchises. A number of city media Uber drivers and yellow-taxi drivers, and members ers frequently ask about discounts. To avoid price companies, including Vice, Salon and The Root, of Planned Parenthood, Make the Road New York hikes, he is looking to save on labor and recently have recently unionized. The Writers Guild of and other pro-labor groups. invested in a filling machine that inserts a preset America, East benefited from the ability to organize The stated goal was “to demand good jobs and amount of chocolate-covered almonds or espresso individual editorial departments within companies. union rights, no deportations, an end to police kill- beans into a bag 30 times faster than a human. Unions could also be hemmed in by the feder- ings of black people and to say, ‘Hands off our health In coming years, he’ll hire differently for lower- al government in less obvious ways. They can be care,’ ” according to a press release. level openings. “Now, we take risks on people who bogged down by paperwork, for instance, forced to But Samuel Estreicher, professor of labor and have never had a job before,” he said. “We train and code how every employee spends each hour. Labor employment law at NYU School of Law, questioned help them get to higher levels. At $15, we need peo- leaders also worry that Trump’s immigration poli- the wisdom of unions fighting for legislation that ple who will perform at a high level right off the bat.” cies will strike fear of deportation in workers they applies to everyone, including nonunion workers. During the past year, Jason Soloway, the owner are trying to organize. Obama’s labor secretary, “They need to have strategies where they can of downtown restaurants Wallflower and The Eddy, Thomas Perez, intervened in negotiations during provide goods and services that these workers can- increased wages for the lowest-paid of his 45 em- the Verizon strike this past spring; Trump’s nomi- not get on their own or from the government,” he ployees to the new $11 minimum. “As a human nee, fast-food executive Andrew Puzder, is vocifer- said. “[Workers] have to have a reason to want to being, I am 100% for it,” he said of the wage floor. ously anti-union. give them money and be under their influence.” “You have to take care of your employees. But as a City union leaders said the labor movement The professor said unions should focus on con- small-restaurant owner, it makes the near-impossible should prepare for “a big transformation,” in the tracts and benefits for their members and team up increasingly impossible.” words of SEIU 32BJ President Hector Figueroa, with the new administration in areas where they To offset growing labor costs, Soloway called on who represents building-services workers. “Our or- might benefit, such as trade and infrastructure. nonculinary vendors—his credit-card processor, res- ganizations will become more and more voluntary All agreed that unions must organize new mem- ervation-systems operator and insurance company— organizations when it comes to members making bers, a task that is poised to become harder under to renegotiate contracts. “I said to them, ‘Did you dues contributions, which means that we have to be Trump. “But unless he becomes a dictator, people read the news? We’re going to be out of business! much more grassroots, much more open,” he said. have freedom in this country to contribute to whom Give me a break,’ ” he said. Unions need to put more resources into organiz- they want, they have freedom of association and Soloway is committed to preserving the customer ing. Figueroa hopes to grow membership 25% over they have the ability to express themselves on the experience at his high-end neighborhood restaurants the next four years. “We’re not going to just play de- ballot,” Figueroa said. “Assuming those things are in even as his costs increase, and is counting the rising
BUCK ENNIS fense,” he said. place, we can reimagine and reinvent ourselves.” n minimum wage as just another obstacle to running a
14 | CRAIN’S NEW YORK BUSINESS | December 12, 2016
P013_P18_CN_20161212.indd 14 12/9/16 5:36 PM MINIMUM-WAGE BUMP IS GOOD FOR ALL Even businesses in low-paying industries will bene t BY LORELEI SALAS AND JAMES PARROTT
WHEN THE STATE’S MINIMUM WAGE rises Several large employers around the country, to $11 an hour from $9 on Dec. 31, workers including Target, T.J. Maxx, Marshalls, Ikea and at New York City businesses with more than the Gap, have already started raising wages to 10 employees will see the largest percentage better recruit and retain workers, and to improve minimum-wage increase in 60 years. It will be a customer service. According to The Economist, welcome and much-needed addition to pay- even Wal-Mart now says that “higher wages come checks for more than 800,000 low-wage workers before price cuts,” as the company knows it needs struggling to make ends meet in our city. to better motivate its workers to boost productivi- According to the Economic Policy Institute, ty and morale. more than a third of these workers are raising at Higher wages can also bene t smaller or least one child, and the wage hike will help lower-margin businesses in sectors such as retail almost 75% of people living below 200% of and food service, which can grow even while pay- the federal poverty line. ing decent wages. Take, for example, Café Bene ts from the increase are not Grumpy, a New York coffee shop chain limited to low-wage workers; neighbor- that pays most of its employees at least hoods will be helped, too. Local busi- $14 an hour. In January, it is set to nesses that rely on their neighbors to open its eighth location, up from just stay a oat should see sales rise—and one in 2005. Shaak Shatursun, who more local spending means more local oversees the company’s retail opera- stability. Government also can gain, as tions, reported that offering decent wages RAISING THE MINIMUM an increase in the minimum wage means has helped attract and keep better talent, New York business owners prep for the coming wage hikes BY CARA EISENPRESS fewer residents on public assistance. and also represents the company’s commitment to A recent New York state-focused University of helping its employees manage the city’s high cost California study concluded that businesses will of living—all while it has continued to expand. successful restaurant in New York. e biggest hit to be able to adapt to the higher wage oor without This is the type of growth that our workers his budget will be overtime. pro ts falling. They will save money on turnover need to feed their families and that our city “It’s hard getting cooks as it is and you can and operations as workers stay on the job longer needs to thrive. As Shatursun can tell you, there’s run into overtime,” he said. “You’re looking at and improve their performances. Increased con- no reason to be grumpy about higher wages. $20-plus an hour.” sumer spending will boost demand, which should Higher wages also translate into higher payroll be able to absorb modest price increases that Lorelei Salas is the commissioner of the New York City taxes and workers’ compensation insurance premi- would allow businesses to stay competitive. The Department of Consumer A airs, which houses the ums for businesses. e government will pay more, overall result will be more-ef cient businesses O ce of Labor Policy and Standards. James Parrott is too: e minimum wage will add $31 million to and no net reduction in jobs. the chief economist of the Fiscal Policy Institute. the state budget in 2017 to cover the increase re- ceived by workers whose employers, mainly social- services and health care nonpro ts, contract with the state. at amount goes up to $326 million in 2019, according to the state’s revised nancial plan WAGE HIKE IS SILENT JOBS KILLER from November. Public spending on food stamps and Medicaid will shrink by $200 million to $500 New York’s gains would be far greater without mandate million, though, and New York City families earning BY E.J. MCMAHON the new minimum wage will pay an estimated $250 million more in income tax, according to a brief by NEW YORK CITY’S MOVE over the next three $9 could result in at least 7,000 fewer new low- New York City Comptroller Scott Stringer. years to a $15-an-hour minimum wage—the wage job openings than if no change were made. “Low-wage workers, they live here,” said Ronnie highest ever, after adjusting for in ation—will Count those 7,000 (or more) uncreated jobs as Lowenstein, director of New York City’s Indepen- take the city into uncharted territory, fraught with collateral damage from the “Fight for $15.” dent Budget O ce. “Any dollars paid in New York risks and trade-offs for workers and businesses. But that’s just the start. With employment get recycled in the local economy.” Initially, the downside may be less apparent. If already sinking in the city’s retail sector—a key The hike doesn’t just increase the cost of min- overall economic conditions remain favorable, source of entry-level, low-wage jobs—the broader imum-wage workers. It also affects the pay scale it’s a safe bet employment in the city will impact of the policy will grow as the minimum at companies that compensate employees at high- continue to rise in 2017. Supporters of ratchets up to $11, then $13, and then $15 er rates, like Brooklyn e-commerce firm Uncom- the higher minimum will tout this as an hour within the next three years. monGoods, where the lowest hourly wage is $14 proof that the policy isn’t hurting job Mayor Bill de Blasio’s scal 2017 and has increased by $1 in most of the previous creation. But those early numbers budget estimated that total employ- years, a practice that will continue even as the gap will be misleading—because they ment in the city will increase by another with the city’s minimum wage narrows. “We pay won’t show the added job growth 147,000 jobs over the next four years. at least $5 above the minimum wage today,” said that would have occurred if the mini- But using methodology developed by the CEO David Bolotsky. “In two years, we will prob- mum wage stayed the same. Congressional Budget Of ce, a study last ably have a starting wage that is less than $5 above Consider the experience in Seattle, year by the Empire Center for Public Policy that, making it more difficult for us to attract and which two years ago enacted a plan to and the American Action Forum estimated retain entry-level workers.” raise its minimum to $15 by 2021. a $15-per-hour minimum ultimately will wipe out Amanda Cohen, who owns vegetarian restaurant University of Washington researchers looked roughly two-thirds of that projected gain—sub- Dirt Candy, has seen how a $15-an-hour wage tight- at the rst stage of the Seattle hike, when the tracting about 96,000 new jobs from growth. ens margins. She started paying all 30 full-time and minimum went to $10 or $11 an hour, depending The bottom line: The real minimum wage part-time employees above that threshold two years on business size, from $9.54. Their key nding: In remains zero—the amount earned by someone ago. Her hope is that restaurantgoers will start to do a much smaller city enjoying a much stronger job who can’t nd a job. Unfortunately, thanks to the the math and accept paying more. boom than New York’s, the low-wage employment rising minimum wage, more New Yorkers are “Instead of pretending that running a restaurant rate rose about one-third more slowly than it likely to fall into that category. doesn’t cost anything,” Cohen said, “why can’t we would have without the wage increase. admit it costs this much to eat in a restaurant?” Extrapolating from that Seattle nding, New E.J. McMahon is a senior fellow at the Manhat- e New Yorkers who receive a raise, of course, York City’s 2017 minimum-wage increase to $11 tan Institute and research director at the Empire will have more dollars to spend on groceries, restau- (or $10.50 for small employers) from the current Center for Public Policy. rants, gi s or chocolate. I
DECEMBER 12, 2016 | CRAIN’S NEW YORK BUSINESS | 15
P013_P18_CN_20161212.indd 15 12/9/16 5:44 PM OUTLOOK | FINANCE OUTLOOK | MEDIA
For the past five years, she has been advo- FACTS cating for a bill that would ease parts of Dodd-Frank concern- ing private equity. In PAM HENDRICKSON is September, the U.S. a leading advocate for 30%THE JUMP IN SHARE changes to Dodd-Frank. House of Represen- tatives approved the prices of Goldman Sachs Investment Advisers since Election Day Modernization Act of 2016, and Hendrick- son said she hopes it soon will be passed by the Senate as part of 20KESTIMATED number of a broader appropria- tions package. Even if New Yorkers working in private equity that doesn’t happen— and it won’t if Charles Schumer, the Senate Democratic leader, makes good on his promise to filibuster $4.2TASSETS UNDER amendments to Dodd- MANAGEMENT at U.S. Frank—Hendrickson private-equity firms reckons private equity will ultimately bene- fit as the Trump administration begins appointing people at the Federal Reserve and SEC who interpret Dodd-Frank less strictly than the Obama adminis- tration’s appointees. “I think we will get some relief on the agency side as regulators change,” she said. PRIVATE EQUITY Private equity seldom lobbied publicly in the past, and its largest firms didn’t even bother to form a trade group until shortly before the finan- cial crisis. But the industry’s growing clout was GOES PUBLIC underscored this month when Blackstone CEO Investment firms take the lead in the fight to weaken Dodd-Frank Stephen Schwarzman was named chairman of BY AARON ELSTEIN Trump’s economic-policy advisory group: the Strategic and Policy Forum. “You’re going to have a very substantial reversal of regulation of all nvestors have rejoiced at the incom- firm Preqin, which says that, on average, managing types,” Schwarzman declared last week at a confer- ing Trump administration’s intention to general partners make $732,000 per year, twice the ence sponsored by Goldman Sachs. unshackle Wall Street from financial reg- average Wall Streeter’s pay. Preqin data show there Brett Palmer, president of the Small Business ulations passed in the wake of the Great are now more than 850 private-capital firms based in Investor Alliance, which represents investment Recession. Share prices in Goldman Sachs, New York, employing about 20,000 people. firms, said it’s unlikely the bill sought by Hendrick- Ithe former employer of Donald Trump’s pick for Although Dodd-Frank didn’t curtail private- son will be approved in the coming weeks, but it Treasury secretary, Steven Mnuchin, have jumped equity’s growth, the industry is nonetheless taking has a “good shot” next year. “Pam is one of private nearly 30% since Election Day. “Make no mis- the vanguard in the fight to weaken the law. That’s equity’s most effective spokespeople,” Palmer said, take: Animal spirits and higher confidence have because after it was adopted, regulators began look- “because she’s persuasive and reasonable.” returned,” Evercore ISI analyst Glenn Schorr said. ing more closely at the fees charged to private-equity New York figures to get a powerful economic jolt investors, and they discovered more than half of all Leading lady from less finan- funds violated the In an industry that most perceive as being stocked cial regulation, law or had mate- with merciless Gordon Gekko types, private equity lower personal NEW YORK FIGURES TO GET rial weaknesses has a friendly public face in Hendrickson to press and business taxes when it came to its cause for less regulation—which she says will and higher reve- AN ECONOMIC JOLT FROM disclosing what grow jobs. A 30-year veteran of the city’s financial nue at banks and funds collected scene, Hendrickson left JPMorgan Chase in 2006 to asset management LESS FINANCIAL REGULATION, for their services. become chief operating officer at the Riverside Co., a firms. Finance is LOWER TAXES AND HIGHER The U.S. Securi- private-equity firm in Manhattan with about $6 bil- the single largest ties and Exchange lion under management. Its holdings include small component of the REVENUES ON WALL STREET Commission filed businesses such as the dating service It’s Just Lunch city’s economy, charges against and the cookie-maker Tate’s Bake Shop. comprising about leading firms and Hendrickson, a 57-year-old mother of two, is a 22% of all private-sector wages, even though Wall has secured nearly $150 million in settlements rare example of a female executive rising to the top Street accounts for less than 5% of the city’s jobs. from such heavyweights as Blackstone, KKR and, ranks on Wall Street. Women hold fewer than 20% With bonus checks for bankers and traders poised most notably, WL Ross and Co., whose chairman, of top-level jobs in finance, according to the U.S. to soar in the coming years, that should mean bet- Wilbur Ross, is the Trump administration’s nominee Equal Employment Opportunity Commission, a fig- ter times for restaurateurs, retailers, therapists and for Commerce secretary. ure that has declined slightly since 2008. the other 700,000 New Yorkers who depend on She proudly noted that Riverside not only pro- financial-services dollars. Unraveling the regs vides its companies with capital and expertise, it The animal-spirit revival is most welcome for Helping lead the charge against Dodd-Frank saves them money by negotiating rates with FedEx Wall Street’s big-game hunters: the private-equity is a little-known Manhattan private-equity exec- and other vendors. During the past two years, River- firms. These outfits have exploded in size and influ- utive who has worked with an industry group that side’s nearly 80 companies have added 600 American ence since the financial crisis as big banks tended to is gaining clout in Congress. Pam Hendrickson is a jobs. “We absolutely want our companies to grow, their wounds. Assets under management have dou- former chairwoman of the Association for Corpo- because if they don’t, we don’t make money,” Hen-
BUCK ENNIS bled since 2008, to $4.2 trillion, according to research rate Growth, which represents 15,000 professionals. drickson said. “We are not about buy, strip and flip.”n
16 | CRAIN’S NEW YORK BUSINESS | December 12, 2016
P013_P18_CN_20161212.indd 16 12/9/16 5:45 PM OUTLOOK | MEDIA CITY’S NEWS TONY HAILE is looking to build a GIANTS LOOK more sustainable model for serious news, a “very FOR WAYS TO hard thing to do.” SURVIVE Subscriptions are soaring but pro ts are plummeting. Look! Here come the innovators BY MATTHEW FLAMM
n some ways, 2016 has been a increasingly lured by access to vast banner year for e New York audiences and the ability to reach con- Times: Subscriptions to the on- sumers at the moment they’re ready to line edition topped 1.3 million, make a purchase. and that was before those for “ at’s an unhealthy marketplace,” Iprint and digital surged in the weeks said Jason Kint, chief executive of Digital following the election. But the publish- Content Next, a trade group for premi- er barely turned a pro t in the most um publishers. He thinks advertisers rely recent quarter, and no one is thinking too much on the big platforms, which that 2017 will mark a turning point. use data collection to increase sales. Real news, from traditional news Publishers, by contrast, build an organizations, has never seemed so emotional connection with readers, Kint valuable—or endangered. New York’s said, and ads within their pages tend to publishers, from the Times to e W a l l be better at fostering desire and demand. Street Journal to Time Inc. and the Daily Kint’s argument may be gaining News, have been cutting jobs and cov- ground with some marketers. “In the erage, in some cases at a jaw-dropping past few weeks, a couple of my clients pace, as the industry’s traditional reve- have had meetings with magazine and nue base—print advertising—declines newspaper publishers I haven’t heard faster than expected. them talk about in serious fashion in But desperation breeds innovation. years,” said Shenan Reed, president Entrepreneurs are developing new ways of digital for North America at media for news organizations to charge for their buying giant MEC. ose clients were online content, building on the successes drawn by the relationship the sites had the Times and Journal have had with their with their readers, she said. paid-subscription strategies. But even if the ad situation for tra- Publishers are also looking to lever- ditional publishers improves—and not age their enhanced status with advertis- everyone thinks it will—they’re still ers as islands of credibility in an ocean going to need multiple revenue streams of fake news. “There continues to be to survive. real demand in the ad market—and we “ e challenge I’m trying to solve is are feeling this acutely now—for be- how we can deliver an experience that The Wildlife Conservation Society (“WCS”), and Equal ing associated with great content,” said consumers actually love, and do it in Opportunity employer, is soliciting bids from qualified firms Meredith Kopit Levien, chief revenue a way that makes the publisher more for Asbestos Containing Material (“ACM “) Abatement at officer at the Times and the architect of money,” said Tony Haile, the former the Osborn Laboratory of Marine Science Building located its advertising strategy. chief executive of Chartbeat, the online at the New York Aquarium on Coney Island. The work is Kopit Levien has overseen the launch reader-measurement system that has be- being undertaken in connection with the Rehabilitation and and subsequent expansion of so-called come a staple of most newsrooms. Flood Mitigation of the New York Aquarium in the after- native advertising, the increasingly pop- Haile is at work on a Net ix-like math of Hurricane Sandy in 2012. Note that while NYC ular strategy in which branded content startup called Scroll, which aims to prevailing wage requirements apply, union affiliation is not is integrated within a platform’s natural, expand the subscription universe for required. Certified M/WBE and Small Business (13 CFR or “native,” voice and style. rough the serious news organizations by building a part 121) companies are encourage to submit. paper’s custom-content production unit, single platform that gathers content from T Brand Studio, native advertising gen- established sources. He’s going a er the Firms interested in participating in the bid process should erated $35 million in revenue last year 90% of news consumers who don’t sub- contact the Purchasing Department by email at purchas- and “will be much bigger” this year, she scribe to a paper, rely on social media to [email protected] or by telephone at (718) 220-5144 to receive said. “For us it’s about guring out how nd what they read, and want content the Request for Bids, the Project Work description and to build programs that are fundamental- from a wide range of publications. other relevant documents. The due date for submission ly about content association and to do So far, Scroll has raised $3 million of bid(s) in response to this Notice is DECEMBER 16, 2016. that at scale.” from investors including e New York This due date may be extended one or more times; any Times Co.; the Journal’s parent, News extension of the due date will be publicized by posting the Looking for eyeballs Corp.; and Business Insider owner Axel new due date on the following publicly-accessible website: e challenge for traditional pub- Springer. It’s set to debut next year. nyaquarium.com/wcs-rehabilitation-asbestos-bid. lishers is to stem the ow of dollars to “ is is a very hard thing to do,” Haile All bids will be publicly opened at the Purchasing Depart- Google and Facebook. By some calcu- said, acknowledging that not all of the ment, Bronx Zoo, 2300 Southern Boulevard, Bronx, New lations, nearly 90% of the recent growth details have been worked out. “But if we York 10463 on DECEMBER 20, 2016 at 11 a.m. in digital advertising has gone to those can do it, then we can have sustainable two giants of the web, as advertisers are journalism, and a better web.” I
DECEMBER 12, 2016 | CRAIN’S NEW YORK BUSINESS | 17
P013_P18_CN_20161212.indd 17 12/9/16 5:59 PM CONTINUED ON PAGE 16 OUTLOOK| SECTORS
WIN, LOSE OR DRAW?
CONTINUED FROM PAGE 13 NEW YORK’S FIVE LICENSED CANNABIS whopping $15,555 per square foot. The deal Music. The group tried to stem the tide by backing COMPANIES, none of which have yet to turn a appeared predicated on huge rent increases that a music-production tax credit that mimics the pro t, celebrated the reforms made by state health didn’t pan out. lm and TV incentive, but Gov. Andrew Cuomo regulators in 2016 to help expand the vetoed it in November. market, including extending cannabis use to chronic pain patients. But market RESIDENTIAL REAL ESTATE BROADWAY next year may be more traditional analyst GreenWave Advisors predicted CONSTRUCTION INDUSTRY spending is pro- than this year, when the smash-hit Hamilton it will be several years before the reforms jected to dip slightly below current record levels, dominated with record-breaking sales and result in signi cant growth. Meanwhile, the cannabis but more people than ever remain employed ticket prices. The new season will bring execs, some of whom praised Trump’s supposed on New York City job sites. Outer-borough tried-and-true, star-driven musicals and respect for states’ rights, could face pressure from developers (and homeowners) will see con- adaptations, including a revival of Hello, staunchly anti-cannabis attorney general nominee tinued increases in home prices, especially Dolly! starring Bette Midler and a staging Jeff Sessions. in Brooklyn and Queens, where demand will of the hit comedy lm Groundhog Day. outstrip supply despite rising interest rates. But their Manhattan counterparts will have more POLITICS HEALTH CARE trouble, while rental landlords there will continue to TRUMP LOYALISTS including former Mayor Rudy offer more concessions to entice tenants into leases HOSPITALS could see a surge in the number Giuliani and New York GOP Chair Ed Cox, along with without lowering the face value of the rent. of uninsured patients if Obamacare is repealed. upstate Rep. Chris Collins and Buffalo busi- AFFORDABLE HOUSING DEVELOPERS have The loss of coverage for some 22 million nessman Carl Paladino, nd themselves a been largely unaffected by the expiration of the Americans, including nearly 1 million phone call away from the most powerful lucrative 421-a property-tax break that has New Yorkers, would result in $165 billion man in the world. Trump’s son-in-law Jared curbed market-rate development in the in losses by 2026 from nonreimbursed Kushner should have his run of the White past year, and ongoing pressure to address care, the American Hospital Association House, and Preet Bharara will hold on to his the spike in homelessness will ensure wrote in a Dec. 6 letter to the president-elect and job as U.S. attorney in Manhattan. He is known for dollars keep owing into this sector. But congressional leaders. Hospitals also are calling busting political corruption, but his of ce’s emphasis resolving the 421-a impasse would clearly bene t for the Trump administration to restore the higher on gang sweeps and drug busts should prove popu- the entire industry. rates of Medicare and Medicaid payments that lar with his new bosses. were in place before the ACA took effect in 2010. THE TOP END OF THE SALES MARKET Those rates were lowered with the expectation FOR NEW YORK DEMOCRATS like Mayor Bill de has softened considerably, meaning any that more people would have insurance. Blasio, Gov. Andrew Cuomo and U.S. Sen. Kirsten Gillibrand, Trump’s presidency is an opening for broker looking to sell ultra-luxury homes INSURERS worry that killing the ACA mandate national roles as opposition leaders. But next year will be up against serious eco- that individuals buy health insurance or pay that mantle will be worn primarily by Sen. nomic headwinds. a tax will lead to fewer people buying Charles Schumer, who will step in as Sen- coverage. However, the widely supported ate minority leader and thus the nation’s TECH rule banning insurers from excluding most powerful critic of the Trump agenda. customers with pre-existing conditions NET NEUTRALITY, the principle behind the rule is likely to stay. As a result, New Yorkers CITY COUNCIL Speaker Melissa Mark-Viverito will that broadband providers can’t charge extra for who buy insurance could be sicker, cutting be rendered a lame duck by term limits, and city internet “fast lanes,” is not a topic that into insurers’ pro ts or forcing them to raise agencies will face federal funding cuts. The Trump has taken a clear position on. But premiums. It’s unclear how quickly a Trump housing authority is unlikely to get much the so-called open internet is generally administration would enact changes, though love from Housing secretary nominee Ben favored by Democrats and opposed by insurers have pushed for a three-year delay Carson, who told a conservative confer- Republicans, who will soon have the deciding votes to allow companies to prepare. ence last year that it is “not compassionate” at the Federal Communications Commission, which for government “to take care of all your needs, your oversees broadband policy. So even if the new ad- HEALTH CARE PROVIDERS funded through health care, your food and your housing.” ministration doesn’t tackle the issue head on, AT&T, Medicaid may face cuts if the Trump administra- Verizon and other big providers may nd they can tion succeeds in shifting payments to block work around the rule without fear of penalty. grants. But such grants typically don’t COMMERCIAL REAL ESTATE keep pace with costs, the New York state RETAIL RENTS ARE RECEDING from record THE TECH IPO MARKET, which has languished Department of Health said. Although the peaks, opening the door for shop owners to take this year and last, is already showing signs of timing of that policy change is unclear, it space in many areas of the city that had be- improvement: The Wall Street Journal recently does create uncertainty for home health care come prohibitively expensive. According to reported that New York City ad-tech giant agencies, disability service providers and others the Real Estate Board of New York, 11 of AppNexus led for an initial public offering that primarily serve Medicaid patients. 17 retail corridors in Manhattan saw rental for the second quarter of 2017. Corporate declines in recent months, including Madi- tax cuts under a Trump White House could HEALTH CARE CONSULTANTS will likely son Avenue, where median asking rents fell further fuel the market, said Katherine bene t from the state’s ongoing $7.4 billion by 22%, and the Flatiron district, which saw average Smith of Renaissance Capital, which man- Medicaid reform program and the shift in asking rents drop by 23%. Even as online shopping ages IPO-focused exchange-traded funds: “That will Medicare to so-called value-based pay- continues to expand, retailers have shown they view improve valuations,” leading more companies to ments, which reward providers for the the city as a key place to project their brands and risk the leap. Smith is looking at Manhattan-based quality rather than the quantity of services. connect with consumers. Nike, for instance, which is Kaltura, an open-source video platform, for another Doctors will need their help to craft strate- aiming to boost its direct sales, just signed a lease possible 2017 IPO. gies to improve performance, design contracts for 70,000 square feet at 650 Fifth Ave., agreeing to and upgrade IT systems to better track and report TECH LUMINARIES, with the notable exception pay a reported record $700 million over the deal’s quality. Andy Slavitt, acting administrator of the of PayPal billionaire Peter Theil, were conspicuously 15-year term. Centers for Medicare and Medicaid Services, told absent from Trump’s presidential campaign. They’ll Crain’s that the complexity of the new payment WHAT’S GOOD FOR RETAILERS IS BAD FOR soon nd out if there’s a price to pay for program has been exaggerated by consultants LANDLORDS. Investors who paid big money for their lack of support when the presi- looking to make a buck from anxious doctors. city retail space are in trouble as rents fall dent-elect sits down with industry leaders But Crain’s has spoken with several physicians precipitously. Take 60 Guilders and the at a planned roundtable meeting in New who say they would rather accept a cut to their Carlyle Group. In April, the rms paid York. Some issues likely to come up include reimbursements than invest time and money in $140 million for two retail condos on immigration—tech companies want better access meeting the new requirements. Greene and Mercer streets in SoHo—a to international talent—and net neutrality. I
18 | CRAIN’S NEW YORK BUSINESS | DECEMBER 12, 2016
P013_P18_CN_20161212.indd 18 12/9/16 5:48 PM TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM
REQUEST FOR PROPOSAL PUBLIC & LEGAL NOTICES
Notice of Qualification of MSG TG, LLC Request for Proposals -- Cost Estimat- Notice of Formation of SAPIENT MEDI- Notice of Qualification of MRB ICBC LLC. Appl. for Auth. filed with Secy. of State Authority filed with NY Dept. of State on ing Services CAL BILLING SERVICES, LLC of NY (SSNY) on 10/19/16. Office lo- 11/29/16. Office location: NY County. Private school in Queens, New York is Arts. of Org. filed with Secy. of State cation: NY County. LLC formed in Dela- Princ. bus. addr.: 1185 Park Ave. No. seeking a licensed professional engineer of NY (SSNY) on 10/12/16. Office lo- cation: NY County. Princ. office of ware (DE) on 10/17/16. Princ. office 11G, NY, NY 10128. LLC formed in DE or other estimating professional, such as a LLC: 379 Fifth Ave., 2nd Fl., NY, NY of LLC: 2 Pennsylvania Plaza, NY, NY on 5/15/06. NY Sec. of State designat- licensed architect or certified professional 10016. SSNY designated as agent of 10121. SSNY designated as agent of ed agent of LLC upon whom process cost estimator, to provide cost estimating LLC upon whom process against it LLC upon whom process against it against it may be served and shall mail services with respect to the repair or re- may be served. SSNY shall mail proc- may be served. SSNY shall mail proc- process to: CT Corporation System, 111 placement of a multi-million dollar dormito- ess to the LLC, Attn: Michael Cerone ess to c/o Corporation Service Co., 8th Ave., NY, NY 10011, regd. agent ry building. Proposers must have managed at the princ. office of the LLC. Pur- 80 State St., Albany, NY 12207-2543. upon whom process may be served. DE key engineering projects or have extensive pose: Any lawful activity. DE addr. of LLC: 2711 Centerville Rd., addr. of LLC: 1209 Orange St., Wilming- experience in the construction industry, Ste. 400, Wilmington, DE 19808. ton, DE 19801. Cert. of Form. filed with Cert. of Form. filed with DE Secy. of DE Sec. of State, 401 Federal St., Dover, and experience in developing parametric Notice of Qualification of 3100 47TH or conceptual estimates without the benefit State, Div. of Corps., John G. Town- DE 19901. Purpose: all lawful purposes. AVENUE SUB REIT, L.P. Appl. for Auth. send Bldg., 401 Federal St., Ste. 4, of complete project documents. Interested filed with Secy. of State of NY (SSNY) Dover, DE 19901. Purpose: Any law- individuals or firms should request the RFP on 11/30/16. Office location: NY Coun- ful activity. by e-mailing the Project Manager at NOTICE OF FORMATION OF Maria Bruce ty. LP formed in Delaware (DE) on Mental Health Counseling, PLLC. Arti- [email protected]. Inquiries 11/03/16. Princ. office of LP: Savanna cles of Organization filed with the Secre- regarding the solicitation must be submit- Asset Management, LLC, 430 Park NOTICE OF FORMATION OF GARO G KAPIKIAN ASSOCIATES LLC. Articles of tary of State of NY (SSNY) on ted in writing by December 14, 2016. Ave., 12th Fl., NY, NY 10022. SSNY 09/22/2016. Office location: NEW Proposals are due on January 3, 2017. designated as agent of LP upon whom Organization filed with the Secretary of State of NY (SSNY) on 11/14/2016. YORK County. SSNY has been designat- Interested individuals or firms must e-mail process against it may be served. ed as agent upon whom process the Project Manager (projectrebuilding@ SSNY shall mail process to Corporation Office location: NY County. SSNY has been designated as agent upon whom against it may be served. The Post Of- gmail.com) to be included in the e-mail Service Co. (CSC), 80 State St., Alba- process against it may be served. The fice address to which the SSNY shall distribution list for any addenda to the RFP. ny, NY 12207-2543. Name and addr. Post Office address to which the SSNY mail a copy of any process against the Small and minority businesses, women’s of each general partner are available PLLC served upon him/her is: 7014 from SSNY. DE addr. of LP: c/o CSC, shall mail a copy of any process business enterprises, and labor surplus 13th Avenue Suite 202, Brooklyn NY 2711 Centerville Rd., Ste. 400, Wil- against the LLC served upon him/her area firms are strongly encouraged to 11228. The principal business ad- mington, DE 19808. Cert. of LP filed is: 20 MARKET PLACE, MILFORD, CT respond to this RFP. dress of the PLLC is: 12 Stuyvesant with DE Secy of State, Div. of Corps., 06460. The principal business address of the LLC is: 401 BROADWAY, STE Oval Apt 10 B New York NY 10009. Pur- John B. Townsend Bldg., 401 Federal pose: any lawful act or activity St., Ste. 4, Dover, DE 19901. Pur- 507, NY, NY 10013 Purpose: any law- pose: Any lawful activity. ful act or activity PUBLIC & LEGAL THE LANPHIER GROUP LLC, Arts. of Notice of Qualification of Hudson Notice of Qualification of Cold Heart Org. filed with the SSNY on NOTICES Square Partners, LLC. Authority filed Records, LLC. Authority filed with NY 10/27/2016. Office loc: NY County. with NY Dept. of State on 11/17/16. Dept. of State on 11/17/16. Office lo- SSNY has been designated as agent Notice of Formation of WHO WE ARE Office location: NY County. Princ. bus. cation: NY County. Princ. bus. addr.: upon whom process against the LLC NOW LLC Arts. of Org. filed with Secy. of addr.: 310 Greenwich St. #36A, NY, 2220 Colorado Ave., Santa Monica, may be served. SSNY shall mail proc- State of NY (SSNY) on 10/31/16. Office NY 10013. LLC formed in DE on CA 90404. LLC formed in DE on ess to: Janet Lanphier, 136 W. 16th location: NY County. Princ. office of LLC: 11/15/16. NY Sec. of State designat- 11/14/16. NY Sec. of State designat- St., Apt 3E, NY, NY 10011. Purpose: 1148 Fifth Ave., #12C, NY, NY 10128. ed agent of LLC upon whom process ed agent of LLC upon whom process Any Lawful Purpose. SSNY designated as agent of LLC upon against it may be served and shall against it may be served and shall whom process against it may be served. mail process to: CT Corporation Sys- mail process to: CT Corporation Sys- SSNY shall mail process to the LLC, tem, 111 8th Ave., NY, NY 10011, tem, 111 8th Ave., NY, NY 10011, Notice of Qual. of Blackstart Partners Attn: Kate Ballen at the princ. office of regd. agent upon whom process may regd. agent upon whom process may Enhanced LP, Auth. filed Sec’y of State the LLC. Purpose: Any lawful activity. be served. DE addr. of LLC: 1209 Or- be served. DE addr. of LLC: c/o The (SSNY) 6/13/16. Off. loc: NY Co. LP ange St., Wilmington, DE 19801. Cert. Corporation Trust Co., 1209 Orange org. in DE 6/10/16. SSNY desig. as of Form. filed with DE Sec. of State, St., Wilmington, DE 19801. Cert. of agent of LP upon whom proc. against it Notice of Qualification of SREF III 47TH 401 Federal St., Dover, DE 19901. Form. filed with DE Sec. of State, 401 may be served. SSNY shall mail copy of AVENUE CO-INVEST, L.P. Appl. for Auth. Purpose: all lawful purposes. Federal St., Dover, DE 19901. Pur- proc. to Att: Scott Scher, 225 W. 34th filed with Secy. of State of NY (SSNY) pose: all lawful purposes. St., NY, NY 10122. DE off. addr.: CSC, on 11/02/16. Office location: NY Coun- 2711 Centerville Rd., Wilmington, DE ty. LP formed in Delaware (DE) on Notice of Formation of Red Spade LLC. Arts. of Org. filed with NY Dept. of Notice of Qualification of RAINWATER OP- 19808. Cert. of LP on file: SSDE, Town- 10/27/16. Princ. office of LP: Savanna send Bldg., Dover, DE 19901. Asset Management, LLC, 430 Park State on 1/4/10. Office location: NY PORTUNITIES, LP Appl. for Auth. filed with County. Princ. bus. addr.: 300 E. 34th Secy. of State of NY (SSNY) on 10/28/16. Name/addr. of each gen. ptr. avail at Ave., 12th Fl., NY, NY 10022. SSNY SSNY. Purp: any lawful activities. designated as agent of LP upon whom St., Unit 20B, NY, NY 10016. Sec. of Office location: NY County. LP formed in Del- process against it may be served. State designated agent of LLC upon aware (DE) on 10/26/16. Princ. office of whom process against it may be served LP: 510 Madison Ave., 28th Fl., NY, NY SSNY shall mail process to Corporation Notice of Qualification of 550 LONG Service Co. (CSC), 80 State St., Alba- and shall mail process to: c/o CT Cor- 10022. SSNY designated as agent of LP poration System, 111 8th Ave., NY, NY upon whom process against it may be BEACH, LLC Appl. for Auth. filed with ny, NY 12207-2543. Name and addr. Secy. of State of NY (SSNY) on of each general partner are available 10011, regd. agent upon whom proc- served. SSNY shall mail process to the Part- ess may be served. Purpose: all lawful nership at the princ. office of the LP. Name 11/01/16. Office location: NY County. from SSNY. DE addr. of LP: c/o CSC, LLC formed in Connecticut (CT) on 2711 Centerville Rd., Ste. 400, Wil- purposes. and addr. of each general partner are availa- ble from SSNY. DE addr. of LP: Corporation 09/30/10. Princ. office of LLC: mington, DE 19808. Cert. of LP filed Midwood Investment & Development, with DE Secy. of State, Div. of Corps., Notice of Formation of TENNY MANAG- Service Co., 2711 Centerville Rd., Ste. 400, Wilmington, DE 19808. Cert. of LP Attn: Legal Notices, 430 Park Ave., John B. Townsend Bldg., 401 Federal ER LLC Arts. of Org. filed with Secy. of Ste. 505, NY, NY 10022. SSNY desig- St., Ste. 4, Dover, DE 19901. Pur- State of NY (SSNY) on 11/17/16. Of- filed with Secy. of State, State of DE, Dept. of State, Townsend Bldg., Dover, DE nated as agent of LLC upon whom proc- pose: Any lawful activity. fice location: NY County. SSNY desig- ess against it may be served. SSNY nated as agent of LLC upon whom proc- 19901. As amended by Cert. of Amend- ment filed with SSNY on 10/31/16, name shall mail process to c/o Corporation Notice of Qualification of EMX DIGITAL, ess against it may be served. SSNY Service Co., 80 State St., Albany, NY shall mail process to c/o Royal Realty changed to SIG NASSAU HALL LP. Purpose: LLC Appl. for Auth. filed with Secy. of Any lawful activity. 12207-2543. CT addr. of LLC: 300 State of NY (SSNY) on 11/07/16. Of- Corp., Attn: Corporate Counsel, One Bry- Long Beach Blvd., Stratford, CT 06615. fice location: NY County. LLC formed in ant Park, NY, NY 10036. Purpose: Any Cert. of Form. filed with CT Secy. of the Delaware (DE) on 10/12/16. Princ. of- lawful activity. Notice of Qualification of CARRIE’D State, 30 Trinity St., Hartford, CT fice of LLC: 229 W. 43rd St., Fl. 8, NY, NYC LLC Appl. for Auth. filed with 06106. Purpose: Any lawful activity NY 10036. SSNY designated as agent Notice of Qual. of BRX Global LP, Secy. of State of NY (SSNY) on of LLC upon whom process against it Auth. filed Sec’y of State (SSNY) 10/25/16. Office location: NY County. may be served. SSNY shall mail proc- 4/22/16. Off. loc: NY Co. LP org. in LLC formed in Delaware (DE) on Notice of Qual. of 3522 Locust LLC, ess to Corporation Service Co. (CSC), DE 4/21/16. SSNY desig. as agent of 10/14/16. SSNY designated as agent Auth. filed Sec’y of State (SSNY) 80 State St., Albany, NY 12207-2543. LP upon whom proc. against it may be of LLC upon whom process against it 9/22/16. Off. loc: NY Co. LLC org. in DE DE addr. of LLC: c/o CSC, 2711 served. SSNY shall mail copy of proc. may be served. SSNY shall mail proc- 9/21/16. SSNY desig. as agent of LLC Centerville Rd., Ste. 400, Wilmington, to Att: Brian Jackelow, 17 State St., ess to c/o Corporation Service Co., 80 upon whom proc. against it may be DE 19808. Cert. of Form. filed with Jef- NY, NY 10004. DE off. addr.: CSC, State St., Albany, NY 12207-2543. DE served. SSNY shall mail copy of proc. to frey W. Bullock, Secy. of State, Dept. of 2711 Centerville Rd., Wilmington, DE addr. of LLC: 2711 Centerville Rd., Ste. NRAI, 111 Eighth Ave., NY, NY 10011. State of the State of DE, Div. of Corps., 19808. Cert. of LP on file: SSDE, 400, Wilmington, DE 19808. Cert. of DE off. addr.: 160 Greentree Dr., Ste. John G. Townsend Bldg., 401 Federal Townsend Bldg., Dover, DE 19901. Form. filed with Secy. of State, 401 Fed- 101, Dover, DE 19904. Cert. of Form. on St., Ste. 4, Dover, DE 19901. Pur- Name/addr. of each gen. ptr. avail. at eral St., Ste. 4, Dover, DE 19901. Pur- file: SSDE, Townsend Bldg., Dover, DE pose: Any lawful activity. SSNY. Purp: any lawful activities. pose: Any lawful activity. 19901. Purp: any lawful activities.
DECEMBER 12, 2016 | CRAIN’S NEW YORK BUSINESS | 19 TO PLACE A CLASSIFIED AD, CALL 1 800 444 6007 OR VISIT CRAINSNEWYORK.COM
PUBLIC & LEGAL NOTICES
Notice of Formation of BIRD PARTNERS Notice of Qualification of MP2 Energy Notice of Formation of ENGLISH LANE Notice of Qualification of 3100 47TH LLC Arts. of Org. filed with Secy. of State LLC. Authority filed with NY Dept. of LLC Arts. of Org. filed with Secy. of State AVENUE JV, LLC Appl. for Auth. filed of NY (SSNY) on 12/01/16. Office loca- State on 10/26/15. Office location: of NY (SSNY) on 11/09/16. Office loca- with Secy. of State of NY (SSNY) on tion: NY County. Princ. office of LLC: c/o NY County. LLC formed in TX on tion: NY County. Princ. office of LLC: 11/02/16. Office location: NY County. Scott Bogel, 885 Park Ave., #10B, NY, 11/10/09. NY Sec. of State designat- 109 Bellewood Ave., Dobbs Ferry, NY LLC formed in Delaware (DE) on NY 10075. SSNY designated as agent of ed agent of LLC upon whom process 10522. SSNY designated as agent of 10/17/16. Princ. office of LLC: 430 LLC upon whom process against it may against it may be served and shall LLC upon whom process against it may Park Ave., 12th Fl., NY, NY 10022. be served. SSNY shall mail process to mail process to: CT Corporation Sys- be served. SSNY shall mail process to SSNY designated as agent of LLC upon the LLC at the addr. of its princ. office. tem, 111 8th Ave., NY, NY 10011. TX the LLC at the addr. of its princ. office. whom process against it may be Purpose: Any lawful activity. and principal business address: 21 Purpose: Any lawful activity. served. SSNY shall mail process to Cor- Waterway Ave., Suite 450, The poration Service Co. (CSC), 80 State EAST 56TH STREET MEDICAL, PLLC, a St., Albany, NY 12207-2543, regd. Notice of Formation of LEONINE MAN- Woodlands, TX 77380. Cert. of Form. Prof. LLC. Arts. of Org. filed with the agent upon whom and at which process AGEMENT, LLC Arts. of Org. filed with filed with TX Sec. of State, 1019 SSNY on 08/26/2016. Office loc: NY may be served. DE addr. of LLC: c/o Secy. of State of NY (SSNY) on Brazos St., Austin, TX 78701. Pur- County. SSNY has been designated as CSC, 2711 Centerville Rd., Ste. 400, 10/19/16. Office location: NY County. pose: all lawful purposes. agent upon whom process against it Wilmington, DE 19808. Cert. of Form. Princ. office of LLC: 372 5th Ave., Ste. may be served. SSNY shall mail proc- filed with DE Secy. of State, Div. of 10B, NY, NY 10018. SSNY designated Notice of Qualification of MRB ICBC LLC. ess to: The PLLC, 60 East 56th St., Corps., John B. Townsend Bldg., 401 as agent of LLC upon whom process Authority filed with NY Dept. of State on NY, NY 10022. Purpose: To Practice Federal St., Ste. 4, Dover, DE 19901. against it may be served. SSNY shall 11/29/16. Office location: NY County. The Profession Of Medicine. Purpose: Any lawful activity. mail process to c/o U.S. Corp. Agents, Princ. bus. addr.: 1185 Park Ave. No. Inc., 7014 13th Ave., Ste. 202, Brook- 11G, NY, NY 10128. LLC formed in DE GEMKET CONSULTING LLC. Art. of Org. NOTICE OF FORMATION OF B.NY INTERNA- lyn, NY 11228, regd. agent upon whom on 5/15/06. NY Sec. of State designat- filed with the SSNY on 11/16/16. Of- TIONAL STARTUP CENTER, LLC. and at which process may be served. ed agent of LLC upon whom process fice: New York County. SSNY designat- Application for Authority filed with the Secre- Purpose: Any lawful activity. against it may be served and shall mail ed as agent of the LLC upon whom tary of State of New York (SSNY) on 11-07- process to: CT Corporation System, 111 process against it may be served. 16. Office location: NEW YORK County. LLC Notice of Qualification of NIMRUD, LLC 8th Ave., NY, NY 10011, regd. agent SSNY shall mail copy of process to the formed in DELAWARE on 10-26-16. SSNY Appl. for Auth. filed with Secy. of State upon whom process may be served. DE LLC, 10 West 46th Street, Suite 1101, has been designated as an agent upon of NY (SSNY) on 11/23/16. Office loca- addr. of LLC: 1209 Orange St., Wilming- New York, NY 10036. Purpose: Any law- whom process against it may be served. tion: NY County. LLC formed in Dela- ton, DE 19801. Cert. of Form. filed with ful purpose. The Post Office address to which the SSNY ware (DE) on 11/21/16. Princ. office of DE Sec. of State, 401 Federal St., Dover, shall mail a copy of any process against the LLC: 11 Beach St., Unit #6C, NY, NY DE 19901. Purpose: all lawful purposes. Notice of Formation of TAMMANY LLC served upon him/her is: 2001 SUMMIT 10013. SSNY designated as agent of MEZZ INVESTOR LLC Arts. of Org. filed PARK DRIVE, SUITE 300, ORLANDO, FL LLC upon whom process against it may NOTICE OF FORMATION of AVANT CAN- with Secy. of State of NY (SSNY) on 32810. The principal business address of be served. SSNY shall mail process to DLE LLC. Arts of Org filed with Secy. of 11/29/16. Office location: NY County. the LLC is: 2001 SUMMIT PARK DRIVE, the LLC at the princ. office of the LLC. State of NY (SSNY) on 10/11/2016. Princ. office of LLC: 299 Park Ave., SUITE 300 ORLANDO, FL 32810 DELAWARE DE addr. of LLC: c/o Corporation Serv- Office location: NY County. SSNY desig- 42nd Fl., NY, NY 10171. SSNY desig- address of LLC is: 2711 CENTERVILLE ice Co., 2711 Centerville Rd., Ste. nated agent upon whom process may nated as agent of LLC upon whom ROAD, SUITE 400, WILMINGTON, DE 19808 400, Wilmington, DE 19808. Cert. of be served and shall mail copy of proc- process against it may be served. Certificate of LLC filed with Secretary of Form. filed with DE Secy. of State, 401 ess against LLC to principal business SSNY shall mail process to Attn: Gen- State of DELAWARE located at: 401 FEDER- Federal St., Dover, DE 19901. Pur- address: 99 Hudson St., 5th Fl., NY, eral Counsel at the princ. office of the AL STREET, SUITE 4, DOVER, DE 19901 Pur- pose: Any lawful activity. NY 10013. Purpose: any lawful act. LLC. Purpose: Any lawful activity. pose: any lawful act or activity
20 | CRAIN’S NEW YORK BUSINESS | DECEMBER 12, 2016 GOTHAM GIGS
UNDER CONTROL: To build a new customer base, Fordin shares a lifetime of auto-body knowledge with women.
Teaching body and soul A fourth-generation auto mechanic empowers women to get to know their cars, inside and out udra Fordin insists that her customers name term widgets with oil filters in her mind. AUDRA FORDIN their vehicles. “When you give your car a She bought the Flushing location from her father in name, you take better care of it,” she said. “It 1997, becoming the first female Fordin to run a body shop. AGE 45 makes things more personal.” After all, “it’s “He still works for me sometimes. He’s on call,” she joked. Ayour butt in the front seat—you better believe it’s personal.” Most regulars adjusted to the transition, she said, but BORN Staten Island Fordin, who owns Great Bear Auto Re- new customers often try to test her RESIDES Roslyn, Long Island pair and Auto Body in Flushing, Queens, “When you give knowledge. “They just don’t know any EDUCATION B.A. in business and comes from a long line of car mechan- your car a name, better. Give me a few minutes and we’ll marketing, Arizona State University ics. Her great-grandfather Oscar Fordin you take better fix that,” she said. LAST STAND The Flushing garage founded the first Great Bear shop in 1933, The mother of three has four full- is the last Great Bear auto shop care of it still run by a Fordin. in Elmhurst. According to family lore, he ” time employees and four part-timers, told each of his four sons to open a location in a different plus interns. Last year, sales topped $911,000. TOP OF HER CLASS Fordin writes a column in industry borough. In turn, many of their sons went into the busi- When things slowed drastically during the recent re- magazine Ratchet+Wrench, and ness, creating a Great Bear auto-body empire that grew to cession, Fordin shifted into high gear to save the business. Great Bear received an NYC Small 78 locations at its height in the 1970s. She launched a free monthly workshop on “automotive life Business of the Year award in Audra’s father, Bill, took over the Flushing location in skills” in an effort to build relationships with female drivers. 2012. the 1960s. He had two daughters, no sons. Fordin said that It has turned into a nationwide program, Women Auto ANATOMY 101 Fordin likens she and her older sister would follow him into the shop Know, with nearly 700 repair shops participating in For- cars to human bodies: “Dashboard is the brain; battery is the heart; to learn all about tools and engines. “I really give him din’s movement to “educate not intimidate” women. exhaust and filters are the credit—he didn’t treat us any differently because we were “If mom gets stuck on the road, she can open the hood respiratory system; motor oil and girls,” she said. “To us, it was normal that you’d spend your and jump-start her battery in five minutes; the kid in the fluids are blood. And, tires, belts Saturday working on cars.” backseat watches that,” Fordin said. “Mom is thinking, ‘I’m and hoses are—rubbers. Don’t Her cousins gradually lost interest, but Fordin stayed a rock star.’ The kid is thinking, ‘Mom’s a rock star,’ and it neglect your rubbers!” she said slyly. “It will cost you time, money, focused. She recalled that in a college economics class she all comes down to that amazing person at the auto shop and get you stuck on the road.”
BUCK ENNIS finally understood the lectures once she exchanged the who showed her how to do it. ” — HILARY POTKEWITZ
December 12, 2016 | CRAIN’S NEW YORK BUSINESS | 21
P021_CN_20161212.indd 21 12/9/16 2:34 PM SNAPS
Legends of song and dance ... and all that jazz The Alvin Ailey American Dance Theater kicked off its holiday season with a benefit and performance at New York City Center on Nov. 30. Guests were treated to Artistic Director Robert Battle’s own choreography with Ella, a tribute to legendary jazz singer Ella Fitzgerald, and a performance of Ailey’s masterpiece Revelations before dinner at the New York Hilton in midtown.
Alvin Ailey Artistic Director Emerita Alvin Ailey Executive Director Bennett Rink, choreographer Judith Jamison, honorary gala chair- and dancer Kyle Abraham and event planner David Bowen at man and singer Solange Knowles the dance company fundraiser. A new work by Abraham, a winner and the company’s Artistic Director of a 2013 MacArthur “genius” grant, will debut during Ailey’s City Robert Battle backstage. The benefit Center engagement, which ends Dec. 31. raised $2.4 million for scholarships.
Inspirations in science
A leading actor in real estate
The Tribeca Film Institute honored William Rudin, chief executive of Rudin Management Co., on Nov. 28. Rudin’s wife, Ophelia Rudin; Jane Rosenthal, co-founder and board co-chairman of the Tribeca Film Institute; William Rudin; and Margaret Honey Scott Rechler, chairman , president and chief executive of the New York Hall of Science, Guy Chiarello and chief executive is joined at the museum’s Nov. 16 benefit by honorees , president of Dr. Leonard Schleifer of RXR Realty. First Data Corp.; , founder, president and chief executive of Regeneron Pharmaceuticals; and Dr. George Yancopoulos, chief scientific officer of Regeneron Pharmaceuticals.
Actor Robert De Niro, film institute co-founder and board co-chairman, with his wife, Grace Hightower, at the R Lounge in Times Square, where the benefit Alyson Archer, partner at Catalyst Advisors, with her husband, John Archer, raised $1.1 million. founder and partner at Catalyst Advisors, and Melissa Vail, co-chairman of the Hall
AILEY DCP, CHRISTOPHER DUGGAN, ANDREW KELLY AILEY DCP, of Science board of trustees, at the gala, which raised $1.7 million.
SEE MORE OF THIS WEEK’S SNAPS ONLINE AT CRAINSNEWYORK.COM/SNAPS GET YOUR GALA IN SNAPS. EMAIL THERESA AGOVINO, [email protected]
22 | CRAIN’S NEW YORK BUSINESS | December 12, 2016
P022_CN_20161212.indd 22 12/9/16 2:37 PM PHOTO FINISH
Expansive, and less expensive he $550 million replacement of the Kosciuszko Bridge appears to be on time and on budget. at’s not an everyday occur- rence in the annals of New York infrastructure. TBut the new Kosciuszko is no ordinary project. e opening of the rst of the bridge’s two cable-stayed spans in spring 2017 will mean clemency for drivers on the Brooklyn-Queens Expressway who are used to a bone-jarring crossing over Newtown Creek (when tra c is moving, that is)—and millions of dollars in savings. What di erentiates this project is the use of “design-build,” a bidding process that allows engineering and construction to be contracted together rather than separately, as is normally the case. e Citizens Budget Commission estimated that design-build could save the city $2 billion over 10 years. e only problem? Albany has approved it only for a handful of state-run projects and has refused to grant the city permission to employ it for city-run jobs. at’s why the issue is the No. 1 legislative priority for city Department of Transportation Commissioner Polly Trottenberg, who is beginning work on a $1.7 billion repair of the BQE’s cantilevered roadway through Brooklyn Heights. “I still have to use traditional design-bid-build, which, frankly, will add years to the project and tens of millions, if not hundreds of millions, of dollars,” Trottenberg told Crain’s. “It just makes no sense.” — JEREMY SMERD BUCK ENNIS
DECEMBER 12, 2016 | CRAIN’S NEW YORK BUSINESS | 23
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